(Long Post) Tues when I posted \"$FUSZ likely to see .40\'s next
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Posted On: 03/02/2018 3:16:59 PM
$FUSZ was $0.63 then, I was hoping that maybe some of you would follow along w/me. I mgs'd a few guys on Twitter at the time. So other's here can vouch for me.
I sold the .65's & .63's Monday. Someone hit me on the bid and sold me the $0.434's & 44's this morning.
Low .30's - mid .20's is the next stop. It's in the bag already
On these pre-revenue story stocks, one generally has to buy and sell them many many times along the way getting where they're going, regardless of where the initial purchase was.
Otherwise, it can be a long, disheartening wait, often to the point where people "throw-in-towel," and sell in disgust waiting for the sales that impatient shareholders think should just immediately materialize.
It rarely ever works that way. In fact, it never works that way.
Building material revenues in brand new company w/new technology always, always, always takes a lot more time than you think. Even managment is likely wrong, optimistic, but likely wrong. There is always significant lag time between product release and material sales numbers in the start-up world.
Just because there are signed marketing agreements doesn't guarantee immediate consumer uptake. The marketplace can be a fickle, bipolar, unpredictable bitch.
That's why a very robust, talented sales force is critical for young company's w/young, unproven technology. But that is hard to find, even harder to build out an effective sales team.
And expecting the 3rd party marketing company's sales force to drive sales is terribly unrealistic for a whole variety of reasons I don't have time to get into now.
You'll notice daily trading volume is dropping off fast. That means the story is known and whoever was going to buy on the story has already bought on the story.
New marketing partnership news releases, when they come, will provide small short bursts in price action. Though as soon as the volume dries up again, price will drop off again. Execution and sales is the only thing that's going to drive price now.
From a Corporate Finance perspective, at some point when there are actually sales numbers, there will have to be a reverse split, among many other things. 120M shares outstanding, and counting is not sustainable. Some would suggest it's irresponsible. But that's how young companies incentivize talent to work for peanuts. So, shares outstanding is likely to grow quite a bit more. The financial picture is going to get a lot worse before it gets better.
For those of you who have never run a start-up, or don't have an Investment Banking background just do the math on what kind of revenue it would take to drive that many shares using a simple "price-to-sales" number. Then compare that number to other start-ups to see what they're up against in the marketplace competing for investor capital. PSR is a decent way to value a new, growing (assuming there is growth) pre-profit companies.
I'm in the Financial District in Beverly Hills, maybe 15mins from FUSZ corporate offices. I'll eventually go see the team over there when I have the time.
I'd better stop now. Don't want to blow you guys outta the water with too much "real-life in a start-up" info. I'll drop in from time to time. Be careful out there
I sold the .65's & .63's Monday. Someone hit me on the bid and sold me the $0.434's & 44's this morning.
Low .30's - mid .20's is the next stop. It's in the bag already
On these pre-revenue story stocks, one generally has to buy and sell them many many times along the way getting where they're going, regardless of where the initial purchase was.
Otherwise, it can be a long, disheartening wait, often to the point where people "throw-in-towel," and sell in disgust waiting for the sales that impatient shareholders think should just immediately materialize.
It rarely ever works that way. In fact, it never works that way.
Building material revenues in brand new company w/new technology always, always, always takes a lot more time than you think. Even managment is likely wrong, optimistic, but likely wrong. There is always significant lag time between product release and material sales numbers in the start-up world.
Just because there are signed marketing agreements doesn't guarantee immediate consumer uptake. The marketplace can be a fickle, bipolar, unpredictable bitch.
That's why a very robust, talented sales force is critical for young company's w/young, unproven technology. But that is hard to find, even harder to build out an effective sales team.
And expecting the 3rd party marketing company's sales force to drive sales is terribly unrealistic for a whole variety of reasons I don't have time to get into now.
You'll notice daily trading volume is dropping off fast. That means the story is known and whoever was going to buy on the story has already bought on the story.
New marketing partnership news releases, when they come, will provide small short bursts in price action. Though as soon as the volume dries up again, price will drop off again. Execution and sales is the only thing that's going to drive price now.
From a Corporate Finance perspective, at some point when there are actually sales numbers, there will have to be a reverse split, among many other things. 120M shares outstanding, and counting is not sustainable. Some would suggest it's irresponsible. But that's how young companies incentivize talent to work for peanuts. So, shares outstanding is likely to grow quite a bit more. The financial picture is going to get a lot worse before it gets better.
For those of you who have never run a start-up, or don't have an Investment Banking background just do the math on what kind of revenue it would take to drive that many shares using a simple "price-to-sales" number. Then compare that number to other start-ups to see what they're up against in the marketplace competing for investor capital. PSR is a decent way to value a new, growing (assuming there is growth) pre-profit companies.
I'm in the Financial District in Beverly Hills, maybe 15mins from FUSZ corporate offices. I'll eventually go see the team over there when I have the time.
I'd better stop now. Don't want to blow you guys outta the water with too much "real-life in a start-up" info. I'll drop in from time to time. Be careful out there
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