My expectations related to earnings reports going forward:
12/31/12 - The market will react negatively to the company posting a negative cash flow of $7 million, give or take a million. New placements will not be substantial enough to offset the fact that the company will have to tap into the equity market at a time the pps is under pressure.
3/31/13 - The market will react in a mildly positive manner because a substantial increase in placements is sufficient to offset conrinuing substantial negative cash flows.
6/30/13 - The tide begins to truly turn as deferred revenue income continues to increase and card sale income begins to show meaningful usage of the placed devices. Negative cash flow declines in spite of an accelerating placement of devices. PPS increases substantially.
If you can handle a hot kitchen until they report the 6/30/13 results, the pps will exceed current levels by an aatractive amount.All of this imho
Endo, what you say is probably so since the market doesn't give a hoot about deferred revenues. That's why Gulfo underscored this point. But what I don't understand is why you can't book those receivables now since they are legally binding. Sam
This is my opinion but I believe it's a buy at these prices. Pretty much all analyst have a buy rating and the institutions that are long are jp Morgan (1.61 million), key colony (1.21 million), Barclays (.82million), and vanguard (.66million). These institutions don't spend millions on a failing company. Also, the history shows how the stock drops and spikes up so just wait for the spike it will happen again.