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Re: Wave's revenue forecast

By: DigSpace in ALEA | Recommend this post (0)
Thu, 03 May 12 6:34 PM | 60 view(s)
Boardmark this board | The Trust Matrix 		Msg. 07524 of 54959
(This msg. is a reply to 07522 by Cactus Flower)
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For a time the rates related rates were favorable. Such is not the case now.

For all the posturing re:SP, dilution, getting it, etc. , if one graphs SP against cash in treasury since inception, it is rather striking. Similarly if one graphs SP vs cash-flow over the more recent years, they see the same thing.

So while bean counting is scoffed at, it nails share price withing a few pennies when related to cash-flow or cash-on-hand within a remarkable small deviation.

True, these cash-changes correspond to note worthy thingys like GM, so one could argue it is GM, but as the GM cash peters out the SP marches in lock-step. .
Smaller deals that improve cash-flow generate plateaus or rallies depending on their magnitude.

While this is generally a duh moment, the strength of the correlation was something I previously under observed. I will allow it to better direct my exposure going forward.


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The above is a reply to the following message:
Re: Wave's revenue forecast
By: Cactus Flower in ALEA
Thu, 03 May 12 3:00 AM 		Msg. 07522 of 54959

"Time is an enemy in this case because the burn rate continues to exceed the income rate."

We are thinking alike on this. See my post re productivity per sales person on DD.

The rate of increase in sales is being outstripped by the rate of cost increases on the sales side. So the productivity of the sales force is decreasing.

Some of that may be due to hiring staff who are wet around the ears to begin with. But I'll be looking to see signs of acceleration on the sales side from here. If the demand isn't really present, then the staff increase will result in an anemic growth rate.

So sales productivity's the number to watch in my view. And Feeney suggested the staff numbers would be fairly stable in 2012 so it should be possible to do an apples to apples comparison through this year.

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