Ann: Encouraging Start to White Label Telco Sales, page-3

My initial reaction to the announcement was the same and it certainly wouldn't have me buying back into the company at this stage.

They have failed to deliver on literally every goal they have set, changed directions and are now a debt laden company on the edge of oblivion if they don't start getting revenue flowing quickly. (all in my opinion of course).

However, they are now back on my 'maybe' list.

The $3.3k new rmr represents around 412 new customers paying about $8 each. An insignificant amount given their cash outflows and how long they have supposedly been in the 'growth phase'.

However, SCT (not the telco) are targeting 10% of the customer base which would mean 140 000 customers. If they continue the $8 rmr then that would be $1.12 mill a month or around $13 mill a year.

Now that would be attractive! And from only one of their markets.

So it is scalable. It is light on capital expenditure under its current system and has potential.

It's only a maybe at this stage because, well, this has been the story for years now, so I will want to see some month on month growth figures first.

Milesy