Should be focus of analytical efforts over next several quarters IMHO---
As explained by Jerry in last conference call, reported earnings will
be impacted by (non-cash outflow expenses) "mark to market"
accounting for the change in contingent liability of additional stock
issued to former Hego shareholders based on achievement of
Thus the higher the stock price of Chyron from the end of one quarter
to the end of the next quarter, the greater will be the non cash
expense and the impact on reported earnings.
Operating earnings and operating earnings per share will not be affected by this--
Important that this be made clear on financial statements going forward,
and I am quite certain that this will be the case.
I should add that if Chyron stock were to decline from the end of one
quarter to the end of the next quarter, then there is actually a credit
(non cash) to reported earnings---earnings enhanced, as the
contingent liability for the Hego stock issuance would be reduced--
This is mark to market accounting--
Again, this is essentially bookkeeping item and no impact on cash
Ultimately, when the metrics are achieved---(good chance that they
will be), then the contingent liability will be completely wiped out,
Hego shareholders will be issued approximately 6,000,000 shares
of stock and the stockholders equity section of the balance sheet
will increase by the amount of the contingent liability wiped out---
I am continuing (for now) to think that operating earnings per share in
2014 could come in around $.20 per share--Currently Chyr @ $1.50--
As always, many risks but IMHO it would seem that there is a good chance
that Chyr trading perhaps 60% higher ($2.40) a year from now--
this would involve a 12X PE applied to my $.20 guess on operating earnings per share
I am in line with your numbers. Your opinions are as fully fleshed out as I have seen here.
the World Cup next summer represents a good opertunity to make a showing. With a world wide viewership it presents a big stage. In addition our foot print in European soccer is in place. I wouldn't mind hearing MWW comment on ChyronHego at the world cup.