heute noch für 0,355 $ und nächste Jahr ?
AlphaTrade: ''A Going Concern''
VANCOUVER, British ColumbiaAlphaTrade.comJames Chan, 604-681-7503james@alphatrade.com
AlphaTrade's (OTCBB:APTD) management is pleased to announce AlphaTrade's projections of success for 2005 -- amounting to between $1 and $2 million in gross profit.
"AlphaTrade is a successful company, five years old now, with a product that has differentiated itself from its competitors," said Penny Perfect, Chief Executive Officer. "Our subscriber base is happy and our projections of a significant gross profit for the upcoming year are based on last year's near-doubling of revenues."
Ms. Perfect is pleased to list the following reasons as to why the company expects to continue as a "going concern" in 2005:
-- The Company has established a history of improved cash flows. Any doubt about its ability to continue in operation for the next 12 months has been eliminated by its vastly improved cash flow and positive cash flow in the first two months of 2005. The Company went from a negative cash flow from operations of $944,717 in 2003 to a negative of only $52,713 in 2004.
-- Dramatic sales increases. Sales increased from $939,868 in 2003 to $1,918,756 in 2004. This is an increase of 204%. The Company expects a similar increase in 2005. The Company's unaudited sales in the first two months of 2005 were $446,389, which annualizes to $2,678,334.
-- Fixed costs let margins grow. The Company's costs of sales are largely fixed costs. The Company pays a minimum monthly fee to most of the exchanges for the data feeds it markets. AlphaTrade's gross profit increases significantly as its sales grow. The gross margin grew from 10% in 2003 to 31% in 2004. The cost of sales increases at only 48% of the rate of the growth in sales.
-- 2005, expected to yield up to $2 million in gross profit. The Company projects revenues of approximately $5,000,000 for 2005. The estimated gross profit on $5,000,000 in sales should be $2,200,000. Even at a conservative $4,000,000 in projected revenues the estimated gross margin would be $1,700,000. (By comparison, an old-line industrial company would need as much as $20 million in revenue to yield $2 million in gross profit.)
-- Enhanced profitability due to a stable, growing subscriber base. Because of the difficulties inherent in building enthusiastic subscriber bases without massive capital expenditures, companies like AlphaTrade often take four or five years to mature. AlphaTrade's subscriber base is healthy and growing -- and its projected profitability is a result of its success in building a critical mass of motivated supporters who also happen to be subscribers and, in a growing number of cases, investors.
-- No increase in overhead. In 2004 the Company incurred cash expenses of $1,364,097. We expect that our overhead will be about the same in 2005. Any increase in overhead would be in advertising and marketing expense, however we budget our marketing expenses according to our cash availability. This means that we will only increase advertising if we raise money though the sale of our shares in a private placement or public offering. This also means that we expect to be cash flow positive from operations in 2005. We have had positive cash flow of about $100,000 in the first 2 months of this year.
-- Proven capital-raising track record to be enhanced. The Company has a proven track record of raising the money it needs to fund its growth and operations. In 2003 we raised almost $890,000. We raised only $150,000 in 2004 because of our reduced need for capital. We are offering 5,000,000 shares of its common stock in a private placement at $0.40 per share. If the private placement were completed the Company would receive net proceeds of approximately $1,750,000.
-- The Company's liquidity is adequate. As of December 31, 2004 we had $79,339 in the bank. This is more than our negative cash flow from operations in 2004. Our current liabilities of $2,131,067 did exceed our current assets. But when the liabilities to the Company's founders of $1,569,680 and deferred income of $181,963 are excluded the deficit is only about $300,000. We have paid our accounts payable down to $100,000 as of February 28, 2005 and we are current with all of our creditors.
-- Founders' commitment is stronger than ever. The Company's founders continue to add to their share positions. It is anticipated that most of the related party liabilities will be converted to AlphaTrade common stock.
-- Enhanced functionality to add even more subscribers. Management's plans include concentrating its marketing and development efforts on increasing the number of subscribers for the stock tracking product, known as "E-gate". The Company continually improves E-Gate and recently has added additional functions such as the tracking of long-term and short-term gains or losses. The enhancements are expected to add new subscribers and therefore increase of the Company's sales in 2005.
This release contains forward-looking statements, which address a variety of subjects including, for example, the expected revenues for 2005 and the development and implementation of business strategies in our target markets. All statements other than statements of historical fact, including without limitation, those with respect to APTD's goals, plans and strategies set forth herein are forward-looking statements. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: APTD's success, including its ability to improve its cash position, expand its operations and revenues and sustain profitability and further depends on its ability to execute on its business strategy and the continued and increased demand for and market acceptance of its products and services. APTD may not be able to expand its operations in accordance with its business strategy and therefore APTD's cash balances may not be sufficient to allow APTD to meet all of its business and investment goals. APTD derives a significant portion of its revenue from a large group number of customers and the results of operations are dependent on maintaining our growth in subscribers. For a detailed discussion of cautionary statements that may affect APTD's future results of operations and financial results, please refer to APTD's filings with the Securities and Exchange Commission. Forward-looking statements represent management's current expectations and are inherently uncertain. We do not undertake any obligation to update forward-looking statements made by us.
