SexQube [P3tel's adult broadband TV and VOD service] announces a significant boost in viewers and subscriptions. ... Following recent marketing initiatives including .... magazine campaigne, database marketing, and online affiliate programs, traffic and subscription figures between December and February have increased 150% month by month. ... A highly targeted online campaign starts this week and is forecast to generate additional sales of $60,000 per week based on a 10% buy rate of 1 movie per week.Unlike other companies I could name, Petel tends to be conservative in its predictions, and its past growth has historically surpassed the estimates they originally published, so chances are good that the revenue they expect, and more, will be obtained.
Given that the company has a gross margin of 70% (not unusual in the adult entertainment e=industry) and only $500,000 in overhead expenses (annualized from the 2007 Q3 report), this means a base profit of $1.6 million - or about 9 cents per share - triple the current price.
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