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Originally posted by vtcpa04:
It's official. The "E" has been dropped!
http://finance.yahoo.com/q?s=talle.ob

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Paying 350,000 USD for a company that will give 1,000,000 USD in additional annual revenue and 500,000 in additional annual profitability.

LIVIOS.

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Originally posted by Livios:
Great news indeed.

Paying 350,000 USD for a company that will give 1,000,000 USD in additional annual revenue and 500,000 in additional annual profitability.

LIVIOS.

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Yup. Well it is in stock, so they will have more then 350k when they decide to sell it cause TALL is gonna fly!

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Due Da Due......But Be Quick About It!!!!!

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Originally posted by bauer:
Hit 52 week high of .033. I thought it was higher...

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Originally posted by herm:

52 week high isn't .033... it is higher

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Originally posted by bauer:

What is it?

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.045

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Originally posted by Breezer:
To anyone out there: "do you think this is a long term hold?" Is there any news coming about products or contracts?

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Im holding at least untill the next 10Q, which should be on time, so no E, and it should show a profit.
Today or tomorrow the management starts with a roadshow to promote their company and stock. A PR will follow concerning this.
Almost every week they announce new contracts for their MDI solutions.

LIVIOS.

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Originally posted by Breezer:
To anyone out there: "do you think this is a long term hold?" Is there any news coming about products or contracts?

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Breezer,
this company is expecting to have an EPS of .01..The P/E ratio for industry is 36..Which should give us .36 PPS..
Since we are in OTCBB and a high risk company forget 36 and let's use 15..This should give us a PPS of .15...
This is a great long term hold if management can provide an EPS of .01..
Check out the news and financials...They are doing great...

GL

OK, let’s go in depth here on revenue and EPS, (Lengthy text, warning)
This is my view on Active Core revenue and EPS predication:
I want to approach the issue from a business perspective rather than from accounting perspective only. Because of specific challenges an IT company has in recognizing its license, maintenance and services revenue. Due to SEC regulations and GAAP accounting rules. (see on the bottom). The following is meant as an example, not a financial analysis of the 10Q)

Because so far, I’ve seen mostly financial approaches to the expected quarterly results, without an understanding of the underlying business.

Important for me, to determine if ActiveCore is a viable investment, is their ability to sell software and services, and to grow those sales substantially quarter over quarter. As Brian states, the financial results will follow the business, and he’s right. This is why:
Once a deal is closed with a customer, that deal holds a certain value. However this value can NOT be reported as revenue immediately. There are many reasons for this, but the main ones are: The project will first have to be delivered to the customer, in such a way that there is no risk anymore of the customer claiming the vendor/supplier.

This means, that a project can hold for example, 500K licence, 500K services, and a yearly revenue of 100K for maintenance, which usually commences 3 months after signing the licence agreement.
No we get into the delays, of seeing this deal through to revenue accounting, and into the quarterly reports.
First the project usually does NOT start right after the deal is closed, a team needs to be assembled and resources allocated, both from the customer and the vendor.
THEN, mostly the Licence value can only be recognized after closure of the project is closed, so after the customer has agreed to a successful delivery. With bigger projects this can sometimes even mean that the license value comes a year later, or partial approval is agreed to split the project into parts. The same can apply to Services, depending on the Terms and Conditions of the contract, only when services are sold separately from the licence, and each spent hour can be invoiced immediately, that revenue is recognized. Maintenance revenue can be recognized directly, since there is an ongoing obligation on the customer side, based on the signed contract.
All in all that means, in rough terms, that the recognized revenue, the part show in the 10Q is only a small part of the revenue closed in that quarter.

For a business that runs multiple years this is not a big problem, as revenues of previous quarters are recognized, while the closed business will show in quarters to come.
So, since ActiveCore has moved into this business mainly per Q4-2003, and recognized part of that revenue in Q1-2004, its save to assume more of that revenue from Q4-03 and Q1-04 will show in the Q2-04 report.
So, the revenue shown in Q1-04 may be part of deals closed up to a value of 500K dollar in Q4-03, with a more successful first quarter, they may already have closed 1 million dollar of business in Q1-04, twice the amount of Q4-03 to be conservative.
It is absolutely normal that we’ve seen only that relatively small amount of revenue shown in the 10Q of Q1-04.
Now, suppose they have substantially expanded their business reach, which they have without a doubt, that then means that over the course of this year we will see more of the business closed into recognized revenue, over the quarters to follow.
For most businesses its save to assume only 20 percent of the business closed shows in the current quarter, realize that 50% of the business closed in a quarter is in the second half of that quarter. So, we may see an increase of 400-500 percent of recognized revenue in the 10Q’s to come, simply because that business is already closed.
Hence, to have a real perspective on their growth we need to understand the value of the closed business and the value of the qualified pipeline, the later being the business they will close with 80 percent certainty. Unfortunately they are not allowed to mention that by US regulations.

Now, have said all of that, we need to add Ccom and TwinCentric which will both, at a minimum add 1 million revenue this year. (Hence they make much more money on a yearly basis, see PR’s).

With an organization of around 50 people AC may have a OPEX of (50 times 50K) 2.5 million on a yearly basis, when we add an additional million for other costs like marketing and such, they can operate at 3.5 million total costs a year. When they want to make 1 ct EPS, they additionally need to make 2.5 million, (based on a weighted free float of 250 million), totalling to 6 million on a yearly basis. Cutting that in a Q4-04 expectation, they need to be able to do 6 million divided by 4, equals 1.5 million revenue that quarter.

Based on the shown evidence, I fully expect ActiveCore to overachieve this target, based on the results demonstrated in the 10Q, and the acquisitions of CCom and Twincentric.

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Originally posted by Breezer:
Hey - it just showed some green!

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Yes, I think we hit the bottom at 0.022 yesterday.
Someone had to sell some shares the last few days I guess.
With a little bit of volume we should be going up again.

LIVIOS.