Matz laying a big wet schmatz on the board this AM
Post# of 32641
Early, but Mahalo for that!
So, the question is would one like business with more reliable more consistent sales with 80 percent plus margins
Or
less reliable, less consistent with low or non existent margins with less clients...
which could have an effect on how VERB is valued too
"The second historical source of revenue for the company is what we refer to as the legacy business. This business consists primarily of printing welcome kits for our clients’ new sales reps and the fulfillment and shipping of certain marketing related merchandise for our clients. The monthly recurring subscription component of the digital revenue we generate from our application is very high margin business for us with gross margins above 80%. This revenue also commends the highest market multiples applied when calculating market value for the business and the corresponding per share value. When we think of underlying business fundamentals, which in our view is the source of true market value, this is what we focus on, and this is what many value investors evaluating any investment opportunity focus on."
"Accordingly, when valuing our business as a whole, one might incorrectly apply a lower multiple to the combined revenues and a higher multiple for the digital business"
Much Aloha