We’ve begun to get requests from stock analysts (ok, one request) for our economic model. Public companies typically want stock analysts to “follow” the company and write reports on them. This helps to drive interest in the company, which generally helps to drive liquidity, which generally helps to raise the stock price.
Of course, the analyst may not have good things to say, which may help to drive the price of the stock down. Usually though, more liquidity is good, even if the price goes down, because that means that investors can sell their investment at some price.
The above picture links poorly to an Excel spreadsheet. It’s our basic economic model for member and shopper recruitment. Feel free to download the spreadsheet and make your own assumptions about what we spend to grow, and how it might affect our profitability and cash flow.