A bit out of order. I thought it was a reasonable explanation and wish people would stop "playing the man not the ball" on HC. Too many people saying positive comments are employees and negative comments are downrampers looking to get in cheap.
Overall I still disagree with the assessment that JAY's codebase and website are worth $2.5M. It's not a deep technology and given the number of systems that they interface with it's going to have tremendous turnover - that is, they are going to have to constantly update it to keep it useful (otherwise its interface to all the ride systems downstream are going to break). A 5 year depreciation period seems wildly optimistic.
I'm also struggling with how we assess the cash flow contribution of a technology when JAY has had negative operating cash flow for its entire existence. Obviously it's hard to break out expenditure for growth vs care and feeding of the existing business.
All up I don't completely disagree with the methodology, I just think it overstates the value of that asset and would be surprised to see that the $2.5M generates anything remotely comparable as cash flow over its existence, given the costs of maintaining any code base.
JAY Price at posting:
14.5¢ Sentiment: Sell Disclosure: Not Held
