Entscheidet selbst! ;)
DD For ALL
All longs here know I generally post some long DD I workout, usually ending with a pps projection.
Here goes round... 4? 5? Who knows by now
The Deal, First info from SEC filings, Second from PR's
First,
"Revolutionary Concepts Inc., has signed an Agreement with a company that acquired an exclusive global license from REVO to commercialize REVO?s patented wireless security alarm services system. The Licensee is a company that buys and markets security systems and other technologies, and has signed a multi-year worldwide licensing agreement for them to commercialize REVO?s patented ?EyeTalk Communicator System?."
"REVO will also receive an up-front sign-up fee or pre-commercialization fee of $900,000"
"The Licensee formed a new subsidiary company specifically with the intention to acquire, commercialize, exploit and market REVO?s patented system and to sell sublicenses to other companies. The Agreement with the Licensee includes an agreement for non-disclosure and confidentiality, and therefore does not allow us to disclose the Licensee?s name at this time, however, it should likely be disclosed at a later date."
"On September 23, 2013, the Company?s Board of Directors agreed to effectively sell a 100% interest in U.S. Patent 7,193,844 ; U.S. Patent 8,139,098; U.S. Patent 8,144,183; U.S. Patent 8,144,184; U.S. Patent 8,154,581; U.S. Patent 8,164,614; U.S. Patent 8,016,676 B2 to a third party. Under the terms of the agreement, the third party would bear ongoing development and operational cost to build and or secure a licensee or to sell this entire patent portfolio under the best value that can be negotiated. Additionally, the acquiring entity would bear all legal cost to prosecute and defend the patents in any infringement actions. Under the terms being discussed, the Company would receive 40% of all gross profit generated by the sale and or licensing of the patents. The final agreement and terms are subject to shareholder approval."
Second,
"Revolutionary Concepts Signs New Agreement With Tech Firm for Global License of REVO's Patented Online Smart Technology Security System"
"The first step in the REVO's strategy is to license the "EyeTalk" system to exploit the patents for marketing and distribution. This would allow REVO to begin generating income and establish a benchmark value for the system. The second step is for REVO to complete the final negotiations for an agreement to sale the entire patented mobile wireless alarm system portfolio for a higher price."
"The Company is still in negotiations to sell some or all of its patented technologies in the future to generate even greater revenue and value for the Company. "
"REVO has been in talks with a U.S. multinational corporation that specializes in Internet-related services and products and services that include internet search, cloud computing, software, mobile wireless devices, digital entertainment, social networking and online advertising technologies. The internet company, located on the west coast, is a publicly traded company that reported over $50 billion in revenue in their Annual Report for 2012."
"REVO's consultants have engaged the company in several rounds of talks for them to either purchase and/or license REVO's portfolio of product patents."
"Estimated licensing fees at $0.75 per household would yield $3,750,000 per month, $45,000,000 annually with a 90+% market saturation."
"While these saturation levels would not be achieved immediately, the numbers will grow exponentially over the next 5 years as the economy improves, hardware solutions become more economical, and additional third parties offer more end user solutions. We continue to be doubly excited because these numbers do not reflect commercial and governmental applications that may well exceed the residential application estimates and the revenue generated from them."
Now, Companies That I Believe it Could be and Why:
Apple(Multinational)(Located in Cali),
Internet related Services, Safari, Mac OSX, etc... Cloud computing(iTunes is auto synced to it), software(Tons), MOBILE WIRELESS DEVICES(How many do you need?), Digital entertainment(iTunes), Social Networking(iMessage, ALL the apps, etc.), Advertising Technologies(Apps, Podcasts, etc.)
Revenues for 2012: Over 150 billion
Google(Multinational)(Located in Cali)(Partnered with Samsung for Patents),
Internet related Services, its google... Cloud computing(Easy to find), software(Tons), mobile wireless devices(Has a few), Digital entertainment(youtube), Social Networking(Google+), Advertising Technologies(Adsense)
Revenues in 2012: Broke 50 billion
Things to Consider: Samsung and Apple are not exactly on nice terms with each other. Samsung refuses to "play nice" with apple and continually berates them with infringement suits. Possibility of licensing with Apple for a sale to Samsung based upon hatred, established value, and partnership with google?
GREENWOOD ASSETS:
Seriously, how does no one understand we have 8.1 million in assets from greenwood. We have 7.1 million in notes receivable and 1 million in interest accrued. These Values have been put "in reserve" since they are highly liquid assets and will be used in case the company encounters unforeseen expenses that would have otherwise jeopardized the companies ability to operate.
"Fair value of total assets ($8,171,541 reserved)" (From the FILED 10-Q)
"In July 2013, our sales department launched several campaigns that have increased our potential client data base. Initially we had a data base of 500 issuer contacts and 300 related vendors. Each of these numbers has now tripled and the sales process is fully underway. Our marketing program includes strategic asset purchase goals ranging from $500 thousand dollars to $1.5 million dollars in the remaining quarter of 2013. With consideration to notes receivables currently held, we are estimating Greenwood?s projected earnings could be as high as $2.5 million dollars by year?s end including a 15% interest payment due on existing notes receivable and $1.5 million dollars from new business."
Random Good Info:
"considering purchasing up to 20% of the Company's outstanding shares of common stock."
"In view of this announcement, REVO is considering purchasing up to 98.9 million shares or 20% of its 494,748,924 outstanding shares of common stock."
"REVO may periodically consider stock repurchases as a capital investment. "
"Management has presented a proposal to the Board of Directors to distribute a cash dividend or a common stock dividend to its shareholders on a 10 for 1 basis."
"In the coming weeks, we will provide our shareholders with more strategic information that may bring greater value to them and the investment community."
"REVO plans to take measures to significantly reduce its $3.48 million in total liabilities and $751,924 in in long-term liabilities, in an effort to improve its balance sheet."
"We believe, that by reducing and eliminating our debt, liabilities and improving our balance sheet, this should have a positive impact on the Company's future revenue growth and the value of our stock. We are planning additional actions in the near future to deliver greater value to our shareholders."
"In addition, there has been interest in a remaining patent by a toy manufacturer."
(IQmagine deal)
Ron Carter and Ali both entered into 3 year promissory notes for $140,806 and $200,000 respectively, at a conversion rate of 0.005 per share. Why would the CEO and VP make a deal like this if they though pps would go down? They wouldn't... They know where this is going, AND, they know that is a dirt cheap price.
PPS VALUATIONS:
494,748,924 shares
9 million in CURRENT assets. (Greenwood and upfront payment)
= 0.0182 IN ASSSETS PER SHARE, with multiple of 20, 0.3638 per share
With the 12 million is estimated earnings from licensee deal and 1.5 mil in new greenwood business and the extra 1 million in interest earned on notes receivable (15%) for final quarter..
= 0.0475 profit per share, with multiple, 0.95 pps
AFTER THE SHARE BUYBACK (98.9 million) (395,799,139 shares)
With revs from licensee, greenwood, etc.
= 0.0594 profit per share, with multiple, $1.19 pps
Now think, We wait 3 years, achieve 90% saturation through licensee... 45 mill for us annually(40% of total since we are licensing)... so over 100 million for them.
Sale price is profit multipled by 2.5 times. So once you factor in government and commercial applications exceeding this, yearly growth on systems sold, etc. A CONVERVATIVE sale price would be 400 million. Plus, earnings from greenwood, other patent exploitation, Share buybacks, dividends, etc....
We could be looking at $10 per share CONSERVATIVELY in the next 3-5 years. (Only a 10 multiple IF no share buyback happens after this initial 20%.)
20 multiple, share reduction, etc, increased greenwood earnings, etc.
Easily $25+
Now will I save ALL my shares for $25? No. But I will definitely leave in a few hundred thousand ;)
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