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I asked Meir at the meet and greet last year if SAS would retail...

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Dentbumbo

662 Posts.

143

16/01/19

19:28

Post #: 37136007
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Originally posted by dariusgear ↑

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?

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I asked Meir at the meet and greet last year if SAS would retail as well as wholesale and he said yes. That was the extent of the discussion at the time. It would be interesting to know which tyoes of companies they would provide retail services to.

SAS Price at posting: 5.4¢ Sentiment: Hold Disclosure: Held
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