This could be "The Big One"!

I asked Investor Relations at AEYE how exactly they sold their products? Was it Selling? Leasing? Recurrent revenue? Here is the response I received from investor relations.

The model is as follows for the two primary cases:
Customer Website and Mobile Sites – Customer pays upfront license fee based on reach of website (unique visitors) - 200k per 1m monthly - Customer pays 10k monthly for services fees. Customer pay 18% renewal fee every year.
Licensing – Customer pays 225k down and 12% royalty on all revenue produced – This is for developer companies who serve many accounts. They follow 1 above for pricing customer accounts.

The second model seemed like a distributor, so I then asked: Does that mean that your developers (who seem to be like distributors) keep 88% of fees, and you only get 12%, or do I have it reversed? If they get 88%, why did you give away so much?

They responded: No we get 12% passive royalty for licensing. The reseller uses our pricing guides and can make 15% up to 20% on each deal. We are paid the license and the platform fees. Sorry that was not clear. 12% is the royalty for the right to use. We are then paid for the platform and any services in addition.

All I can say is “Wow!” Double Wow! Upfront license fee, plus $200,000 per month per million unique viewers, plus service feels and renewal fees. Can you realize how fast this is going to pile up for a little company with $1 million revenue in the first quarter! That’s not $200,000 per year, or $200,000 per quarter. That’s $200,000 per month. It’s no wonder their revenue tripled. And it’s no wonder that there are no insider sales.

I’ve heard a lot of disagreement about this stock, and worries about them running out of money. It’s just not going to happen! I really think this could be “The Big One” !

I started buying two weeks ago yesterday, on the 7th, just after they announced tripling of revenues sequentially. My first purchase was at 56 cents. I bought some that day as low as 53.6 cents. I’ve added almost every day since, in the 50’s, 60’s, 70’s, 80’s, and even today in the 90’s. It’s currently at 98 cents. The day high was $1.04. Schwab tells me my average price is 67 cents. I may be wrong, but I think this is really, really going to be a big, big, winner.

Saul

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http://www.wallstreetdaily.com/2014/07/17/chaos-system-audio…

Found this after querying for special report on AEYE.

FYI
Mykie

5 Likes

A recent example is the company’s partnership with PromotionPod, a consumer packaging outfit that addresses the retail and coupon markets.

Saul,
In the special report I just posted here…do you understand why this company would want to partner with a coupon company?

This was one of the pieces of news that I didn’t understand, knowing it was mostly a political play. What retail customers would there be looking for coupons?
Mykie

Customer pays upfront license fee based on reach of website (unique visitors)

Are the unique visitors general visitors to the website or those who use AEYE’s service? I am afraid they wouldn’t be able to charge solely based on general user population (I don’t mind if they do) and that the size of portion of the user population that are likely to use the services would have to be in the equation for fee calculation.

Just a thought.

-M

do you understand why this company would want to partner with a coupon company?

I suppose that they want the vision-impaired elderly be able to get the coupons.

plus $200,000 per month per million unique viewers

Are we sure they are saying they get $200k per month per 1m unique visitors to a customer’s site?

If this is a copy/paste from investor relations’ email reply:

Customer pays upfront license fee based on reach of website (unique visitors) - 200k per 1m monthly - Customer pays 10k monthly for services fees. Customer pay 18% renewal fee every year.

…then I think they are saying that they get a one-time fee at a rate of $200k per 1m monthly unique visitors…not a $200k fee every month for every 1m unique visitors. Only the 10k/month, 18% renewal (I assume annual?) and licensing royalty would be recurring

I could be wrong, but that’s how I would read it

-mekong

1 Like

http://www.wallstreetdaily.com/2014/07/17/chaos-system-audio…

Found this after querying for special report on AEYE.

Great find Mykie.

Saul

2 Likes

. I bought some that day as low as 53.6 cents. I’ve added almost every day since, in the 50’s, 60’s, 70’s, 80’s, and even today in the 90’s. It’s currently at 98 cents.

Saul,

What is the advantage of adding in such small amounts so frequently? I also buy in stages, but usually the purchases are separated by at least a quarter.

Jeb

…then I think they are saying that they get a one-time fee at a rate of $200k per 1m monthly unique visitors.

mekong

I’ll write back and check.

Saul

What is the advantage of adding in such small amounts so frequently? I also buy in stages, but usually the purchases are separated by at least a quarter.

the numbers are:
.50 to .60 = +20%
.60 to .70 = +16.5%
.70 to .80 = +14%
.80 to .90 = +12%
.90 to 1.0 = +10%

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Could all of the recent AEYE volume be coming from readers of this board [which did gather 2600 posts in record fashion]?

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Just sayin…

What is the advantage of adding in such small amounts so frequently? I also buy in stages, but usually the purchases are separated by at least a quarter.

Herman
It was hard to buy enough of such a low priced stock to add up to anything without moving the market. Had to buy a little at a time.
Saul

Jeb, I should have been clearer. I also didn’t know much about the company when I started and just bought a little and then started adding more and more. Also, the it’s a bulletin board or pink sheet stock and they often only showed a minimal amount on the bid and the asked.

But basically there was no way I could buy all that I wanted. If I put in a big order they just raised the bid and asked. It had to be multiple small orders.

Saul

I’m not the only one who thought the pre-announcement was a game changer. It closed Friday at 84 ½ cents. It closed yesterday (Monday) at 91 cents. When I wrote earlier today I mentioned it was at 98 cents (which is where I made my final tiny purchase). It closed at $1.07. (It could of course be up or down a bunch tomorrow).

Saul

…then I think they are saying that they get a one-time fee at a rate of $200k per 1m monthly unique visitors…not a $200k fee every month for every 1m unique visitors. Only the 10k/month, 18% renewal (I assume annual?) and licensing royalty would be recurring

Hi Mekong,

Yah, but see then there’s this coupon…

Just kidding,
Mykie

It closed at $1.07. (It could of course be up or down a bunch tomorrow).

Thought I’d post my strategy and where abouts on this stock.

While you guys were jumping in and making money, I spent hours looking for a pump and dump site where either AEYE was mentioned or the CEO or any company he has been associated with. My reasoning was if it is a solid company, I’ll pay more but at least I won’t be duped. I hate getting duped.

My research skills are less than average but I went as far as I could)given the interest and time spent, coming up with zero (that’s good).

So today I jumped in at $1.05, knowing full well there would be subsidence but since I believe this will be a stock priced much higher than $2-3 some day, what’s a few pennies?

Also, if all is well, by the time they are ready for some dilution, I expect to buy more as that too will cause some subsidence. Today’s buy was 1/3rd of what I see myself owning over time.

Mykie

5 Likes

So you caused the volume to jump to 1.3 million shares today. Let us know when you do the next 1/3 of your holding!

lol

With volume like that, it must be way more than interest from this board. Still holding on for $2-3 per share. My average price is about 40 cents per share. That’s a good gain since most of the purchases were in May and June, but I’m not selling yet.

I want to hear more at their next conference call.

Emailing and calling the company directly, about 6 weeks ago, I was able to speak directly with their COO/CFO. He was more than willing discuss things. If you have questions I suggest this route.

Z-Bar

1 Like

So you caused the volume to jump to 1.3 million shares today. Let us know when you do the next 1/3 of your holding!

Would that were so…

Thanks for the info.
Mykie

More info on PromotionPod…

Audioeye, (OTCMKTS:AEYE), declared that the Company has signed licensing and reseller agreements with PromotionPod®, LLC. (“PromotionPod”), which enables the world’s largest brands to design, build, deploy and track mobile marketing campaigns for their target audiences. Headquartered in Greenville, South Carolina, PromotionPod provides marketing solutions for many top consumer brands. PromotionPod’s leadership team is comprised of executives with extensive expertise in product, retail, and loyalty marketing; shopper marketing; business insights; and brand development.