News & Media, page-1792

I have mentioned before that many of us ( including myself ) that are SAS bullish, need some views that are to establish a balanced view. One of my goals when investing in a company is to consider any possibilities for their downgrading or devaluing.

I thought of this one, i wish for others to let me know if I am way off base here or somewhat valid consideration.

One goal for SaS is to reach $1, Billion sales. The year probs does not matter.

I think we have considered value of SAS in the future with these sales being directly attributable to topline sales for SAS and feed through to nett profit.

I have considered recently that maybe the sales figure will be relating to that of those companies that will sell SAS connectivity in the retail space ( no pun intended ). EG all the companies that have signed a MOU.

If I understand correctly SAS will be a wholesaler and will be providing these services to retailers at a discount. Rough estimate in this scenario would be 10-40% as a wholesale cost to retail providers.

If this were the case, This would drastically change the potential value once they achieve operational landmarks.

ie Sales of $100-400 million per year. I know there is still ok margin there, but $100 million per year sales is getting a bit on the low end to enable everything SAS set out to accomplish. I may be way off track here but I am trying to consider possibilities that change potential Company valuation down the track and even rate of growth .

What you think?