... Another Nice Win that I found from an article on SINA a few days ago. This contract may have been in the works for a few months, so it may not be new, but it is certainly new to all of us here on this board.
I don't think they will announce it because it isn't a top 100 retailer. It's a collection of sundry merchants who have been buying lots at about 25,000 Yuan/Square Meter, but the commercial center developer has chosen E-Future for purposes listed above. Grand Opening of this Large 160,000 square meter mall coming soon.
30 million yuan investment in the construction of modern logistics management system, the entire integrated system set up by "E-Future" including: corporate information network systems, telephone call centers, CRM information management systems, ERP business information management systems and financial management information system ORACLE services.
No they won't. Period.
Sorry you are stuck in your position. I collected 9,000 shares today, so you'll have to find somebody else you can dump to if you have an itchy finger. There are reasons E-Future could be worth $20.00, but your reason is not one of them.
How were they stonewalled? It seems like everybody who wanted a fill was filled.
Bobwins, I can't take you seriously. Dow will be 1,000,000 within 3 months. Seems crazy now, but watch and learn!
All the movement was in the morning and that was where all the volume was. Pretty simple, really.
May - July = 1,800 per day
August = 6,500 per day
August last year = 10,000 TOTAL USERS
This is before Yonghui goes from 8 store BETA to 350 store rollout and before Zhejiang Supermarket has even added a user at its 1,200 locations. Pretty clear 5 million users is coming not too far in the future.
Exponential growth in a social shopping app in China to be bundled with Omni-Channel Solution (similar to ECOM's ChannelAdvisor in USA) and just accepted by one of top 50 retailers in China. Draw your own conclusion.
They just sold their whole kitchen sink of services to a major supermarket in China validating in a major way the potential of their synergistic product offerings.
I'll let you guys figure out the details.
Yeah, that's a long, long way off. There is nothing even close to a guarantee that they get there. When I highlighted this, I was painting a picture of the more optimistic scenario over the next few years.
And 150 million users wouldn't equate to a price of $15.00-$20.00. That is not even close. If they could reach their most aggressive goals and bring in 150 million users, the value of the company would likely be well over $400.00. That's a long, long way away.
Amazon - approx $750/Customer
JingDong - approx $360/Customer
Twitter - approx $85/User
What'sApp - Approx $42/User a few months ago, likely higher now.
Weibo - approx $25/User
"Yo!" An App which enables people to say "yo" and ONLY "yo" to each other is valued at about $5.00/user.
I am aware that as of this moment that each individual user of MyStore doesn't have much value because it hasn't reached the necessarily thresholds yet in terms of total/active users. However, should they reach those thresholds, value will be unlocked rapidly and explosively.
Can you give me an example of a C2B business that has become broadly accepted which values each user at $10.00?
Valuing a company like E-Future is very difficult, but in any business which is in the transition phase, you have to look at the size of the market they are entering and the likelihood of that particular company being able to compete successfully in that market. What I laid out was the bullish case, while also understanding that their is a bearish case should they be unable to gain traction fast enough to remain relevant in their newest ventures.
Regarding the discrepancy in the user base, it depends on how many years out you are looking. Both numbers are stated goals of the company depending on the time-frame. A child grows to 4'0" by 7 years old and yet may end up 6'0". A goal of reaching the first milestone doesn't negate the ability to reach the second. Are they achievable? Neither you or I know at this point. But 600,000,000 certainly seems a bit much. At the same time, most successful entrepreneur sets their goals extremely high. Even if there exists a remote possibility of that potential, the stock at these levels may look attractive as it is pricing in failure already. The stock market doesn't hand out free money, but it does create opportunities for those willing to take risks. Clearly there is opportunity here.
I don't know why you have to casually throw around a word like "lying". Pick up the phone. It's very easy to ask them what their stated goals are for growing the business. No need to dismiss something out of hand. Call the company and ask in their OPINION how big they think MyStore can be? The Final Result; nobody knows.
There clearly are risks that the company doesn't execute or can not monetize their seed businesses. The same things that make E-Future a risky investment also make it a very attractive investment. They are entering a niche which has limited indirect competition and no direct competition at all.
Well, if E-Future reaches their own internal goal of 150,000,000 subscribers, the company would be worth a lot more than 40x-60x times the current price. The current share price takes absolutely no consideration on the potential here, yet the company still has to prove that the potential is there. Should they reach those levels, 200x bagger would be conservative. Each customer would be valued at around $30.00 minimum, but as high as $100.00. Valuing these kind of businesses still takes guesswork at this point in mobile development, but I can't see lower than $30.00/user being likely. Should E-Future reach 150 million users and should the market assign them a value at higher end of the value/user curve, it would be worth 1000x today's price.
That's all wildly speculative and the uptake would need to increase significantly, but it needs to be taken into consideration when making risk/reward decisions. That being said, it's only a few months into this experiment, and they are already about 1% of the way there.
By the end of the year, Users will plateau to much higher than 800,000. I'd guess around 1.5M-2M. It will be hard, as an investor, not to start assigning an intangible value on their subscriber base should they reach those levels.
The vast majority of the cash draw-down in Q1 was to be expected. The 2 million dollar cash draw down in Q2... not so much. Looking into the line by line cash flow table tells the story and rationalizes the cash loss.
The company left a lot to be desired regarding their Software Revenue YOY comparisons. According to the company, they still have strong relationships with their current customer base, it's just that brick and mortar retail in China have seen their margins pinched and E-Future is negatively effected as a result.
The backlog appears to be growing consistently as has been the case for the last few years, yet revenues aren't increasing in subsequent years which makes me wonder just how how many years of implementation and onsite training does before payment for services are realized?
On a positive note, the company expects the MyStore subscriber base to plateau over the 2nd part of the year as many of the retailers using Mystore expand the usage coming out of the trial period. I asked them what their goals are over the next few years for total subscribers and they told me they think 150,000,000 is possible. We'll see.
Cash drew down dramatically, but a lot of the reason for this cash draw down is because they are investing in projects that will take time to complete. Also their investment into Omni-Channel (seems similar to the Channel Advisor model - ticker "ECOM") and MyStore seems to be included as investment in intangible assets. The 1.2 million dollar investment is an investment in the long-term future of the company and must be made for the company to execute their business strategy. In terms of the first reason for a case decrease, their cash will rise as these projects complete.
Although the stock has massive upside should the company execute (probably 40-60 bagger potential), they still have to prove the viability of these increasing expenses into Omni-Channel and MyStore, especially as Brick and Mortar retailers tighten their belts and try to be more creative with the metric space available to them rather than expand. E-Future is addressing their customers' need to be more creative with their existing space, but it's going to pinch at first.
To be honest, neither of us know if it is significant or not at this point. But it's worth a mention, for sure.
If you want to continue to personal attacks, be my guest. The bigger the ego, the smaller the account balance given enough time.