How is $700K - $1million per year in revenue growth per year supposed to drive the stock price forward? Is the market saturated and there are no more companies to buy the product? Is the sales and marketing strategy just not there? Maybe the best plan is to market the company to a larger company who knows how to grow the company and reward the shareholders thay way if that is the slow growth that is expected..
I belive you have provided some good information. A company that has a 2013 10.26 million est. in sales may be fairly priced. When SLP initiated the dividend, the share price edged up to $5.00 and has continually eased back down to the current level. At least the price is not lingering in the 2's as it did through most of 2011. Having been a share holder off and on since 2002, I have seen SLP try several initiatives to increase share price and sales. The share price has spiked twice since 2001 and sales as your graph indicates has increased gradually. I remember a couple of years back Walt stated in a conference call he wanted to get the share price back up to 8-10 dollars. Well IMO that will only happen with sales. This is where the disconnect is and has been for me as an investor. SLP states their products are the best of breed, with some ranked number 1 yearly with minor competition, a great ROI from customers and can be produced and ship the product quickly. Walt has stated that they have only scratched the market. SLP has developed a training staff for new and current customers. Walt has gotten grants from the government, collaborations from pharma companies and currently working on a grant from the Bill Gates Foundation. I believe the grants have been extremely good for the company and share holders.
Back to my disconnect and that being if the products are so good, ranked very high, great ROI why sales haven't jumped to 30 or 40% growth for atleast 2 years continuously at some time in the past 5 years. SLP is a 13 year old company. Is the software too hard to use, is the market not that large or strong, does the sales staff know how to sell the product, is the product over priced, not enough sales staff? Since the poor decision of the stock split, SLP can't get the share price out of the tank. The share price and volume is such that the company can't/doesn't attract large private or institutional investors. Until SLP actually has 20, 30, 40 million dollars in sales, this company IMO will just linger between with a share price of 3.50-4.50 dollar share price. I often wonder if the best scenario for shareholders would be having a large pharma company offered SLP a cash/share offering equaling 6-7 dollars. That might sound low but I don't see where SLP is going to get the price back to 8-10 dollars as Walt stated a few years back with the current business model and growth pace.