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Gold/Mining/Energy : BCE Emergis - global e-commerce

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To: Ruby who wrote (1108)	12/13/1999 9:55:00 PM
From: Big Idea	Read Replies (1) of 1341

All I look at is the fact that IFM will have its first profitable quarter and will be a company with $180 Mil in revenue and that this company actually makes sense to invest in. I compare IFM to 2 US based companies in the news recently: RHAT (Linux company) and PPRO (B2B company) I used Price/Sales as the main evaluator.Price/sales is the ratio of a stock's latest closing price divided by revenue per share. Revenue per share is determined by dividing revenue for the past 12 months by the number of shares outstanding. This ratio is particularly useful for companies that have little or no earnings. RHAT $18.7 bil US market cap = $28.05 bil CDN Sales $11 mil US = $16.5 mil CDN Price/Sales 1,541.6 (after today's $26.56 loss, it was 1,738.98 on Friday) PPRO $3.251 bil US market cap = $4,87 bil CDN market cap Sales $2 mil US = $3 mil CDN Price/Sales 1,629.94 IFM $3.387 bil US market cap = $5.08 bil CDN market cap Sales $84 mil US (Jan-Sept only 9 months)= $126 mil CDN Price/Sales 40.31 AND THAT IS ONLY USING 9 MONTHS OF REVENUE. let's assume they hit the $172 mil rev target and the price on Dec. 31 is everyone's favorite number $100/share Price/Sales becomes a whopping 46.51 and if the price stays at $63.50 Price/Sales is 29.53. And how but something as unrealistic as some of those other Price/Sales ratios: IFM adds fourth quarter revenue and finishes the year with $172 mil in sales the share price would need to go to $3,225.00 to equate to a Price/Sales ratio of 1,500 - which is less than the current ratios of both RHAT and PPRO. I didn't want to pick just on Linux shares. IFM is a bargain even compared to B2B companies. For comparison ARBA P/S=236.93 CMRC P/S=3928.58 EBAY P/S 131.9 Food for thought. Sit tight for the split!

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