After being a customer one month, I can say that I am most pleased with the DishNet company and product..
Wow, the picture and sound surely beat my local cable company by a long shot!
However, I do not like the debt associated with a stock buy -- perhaps once they meet the breakeven point of 1.5-1.6 million subscribers all that will change -- for now, I am watching the stock go up and enjoying my DishNet programming!
Actually the break even point is 2.5 million SUBs. 1.5 million Subs is the point where there is positive cash flow and E* can fianance the aquisition of new SUBs. After the 2.5 million point each new SUB is almost pure "gravy" IF E* gets 10 million SUBs that's 7.5 million * 30.00/MO * 12 M0 = 2.7Billion in potential profits. How long will it take to get 10 million SUBs????
Lets see.... 2.7 Billion in profits with 15 million shares outstanding. That puts earnings at $180 per share. Using a PE of 20, this stock is headed for $3600. I become a multi-millionaire. Nice dream.
There are too many variables to consider in future sub growth. The biggest one IMO being the local channels issue. If you look back at previous growth the future looks pretty good to me. Im getting ready to leave my office now to go add 2 more happy subs this morning. Business has been great and the future of this young company looks good to me. Even with the variables. I just wish I would have loaded up more @ the 16 level. Oh well gotta go to work.Someone mentioned the copyright office making a decesion this week? If any body has info on this please post! JOE LAURA A HAPPY DISH INSTALLER