I'm out for now as I've said, at least until the quarterly is released and there is some guidance on WIFI revenue. Unfortunately there was no P1 or shopping center update prior.
It is fact that there are companies worldwide that are profiting from free WIFI and advertising model. The question is, has GCN got it correct also ?
If they made say $100k for the quarter from 2 (understand it has only bee on partially but we can extrapolate the figures), then GCN would be a 50/50 punt IMO. 2 would annualize to $400k, or say $100k per year per site. GCN would then need around 30 to breakeven.
In the event there is some validity to GCN's 40 shopping center deal domestically or in China, then a profitable business is a possibility.
It will all come down to:-
- revenue per sit being at least $100k per annum - time to roll out or acquire at least 40 shopping centers
For now, I'm on the sidelines until the quarterly is released.
GCN Price at posting:
1.4¢ Sentiment: None Disclosure: Not Held
