| Some thoughts about Epoxy and its status quo Many may have not yet understood that in the case of Epoxy, Inc. (EPXY) it is not necessarily about revenues and cash flow. Due to its business model both of these components will be additional benefits for the company in the coming years, but the essence of the business is the acquisition of a certain monetized users. To get the proper picture, we need to calculate the cost of acquisition per user and then the actual value per user in a merger scenario to reach the total valuation of a company. If now the acquisition cost per user is $20 and the value per user is at $450 this means that there are profit margins of more than 2000%. This is very high and therefore extremely profitable as such profit margins are very very rare in the business world. But this is how the actual profit and success of a company like Epoxy is calculated. And as we all know the value of all kinds of users has increased significantly over the past 10-15 years. That’s why larger institutional investors are also very interested in companies like Epoxy as they provide financing to such companies until a certain user base is reached. And that’s how the valuation of a company comes about. The revenue and cash flow are nice additional benefits but are not the ultimate objective. Most similar companies never have any meaningful revenue or cash flow from operations, but in comparison Epoxy does have these additional benefits in place. The bottom line thought it’s all about the specific user database which is the true gem for companies like Epoxy. Every Epoxy shareholder must understand this important fact. Only if such calculations for the valuation of the company are understood properly, then it’s possible to establish appropriate price targets for the stock and to see the potential for the company regarding its future valuation. One potential for Epoxy will be that most likely they’ll be able to sell the company to a large corporation, all due to its vast high-quality database of users. Any valuation of the company will be predominantly based and determined on its database. There are unlimited opportunities for Epoxy in utilizing this very valuable database, especially as it will grow into millions and millions of particular users. Many phenomenal things may develop in the coming years. Perhaps Epoxy will remain a company by itself and will not be sold to a large corporation as it may utilize all sorts of revenue sources which are available to Epoxy in this line of business as the massive user database contains extremely valuable data about specific consumer behavior. |
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