The payment terms make sense. They always said they are push marketers so that cost it high.
I guess I would like to see this 80% retention calc. I can't see the correlation between the growth and the spend. I mean if you align the revenue and spend +90 then you have spent 2 to make 4. That seems more like a 50% retention if that. Unless of course you spend more on marketing then you make of a sale. This must be the case. Which is why they are so concerned about retention. The growth has to curve and this is not happening. I'm not sure about the model.
I hate the logistics thing raising its head again. I mean they were there at the Olympics. If it hasn't happened by now its not going to. It just scares me I wish they would let that one go.
Good luck.
SMA Price at posting:
4.5¢ Sentiment: Hold Disclosure: Held
