re: ATC - Fundamentals ATC should bounce back on...

re: ATC - Fundamentals
ATC should bounce back on fundamentals.

The recent fall was because too many people expected huge results. This is unrealistic, considering they only had about 16 carriers connected included in the 3.02 reports and some of these were not invoiced yet. The April revenue given only had a couple of extra carriers. I figure as follows - conservatively

ATC has at least 50 carriers

Revenues of at least $100k (average) per month per carrier and a gross margin of at least 20%. Not including China Mobile

At $100k x 50 carriers x 12 mths = $60m Turnover

Take at least 20% gross profit = $12m GP

Take Operating costs say $500k p.mth $6m pa

Thats $6m profit pa (not incl China Mobile)

These do not include China mobile (which I am told is at least $6m each year PROFIT because of higher margins)

Thats $12m PROFIT total per year over say 130m shares. Say 9c p.share earnings

Does anyone want to suggest what multiple should be applied to the earnings???

I reckon about 6 times. Thats still 50c share price

I know my numbers are simple and rough, and would be pleased for corrections.

Now I have heard they have signed 56 carriers and recently India worth three times the China Mobile contract.

Dont be surprised if we are taken over...