Originally Posted by
SiriuslyLong
First off, I think they'll have to get some shares off the market in some fashion. With 3.6 B shares outstanding, they would have to clear $360 MM (last quarter $14.2 MM on total revenue of $676 MM and total operating expenses of $596 MM according to google finance).
Without the R/S, the question then becomes how does one get from a net income of $14.2 MM to $360 MM? Mel made a statement last quarter that every new sub is 70 cents to the bottom line. (360 - 14.2)/.7 = damn near a half billion subs - that ain't happening.
Can they cut their expenses in half? Doubtful.
Can they get there by doing a little of each? Still doubtful.
The only way is to get shares off the market. That's my sophmoric take.