Fundamental Analysis shows panic selling has made OMKT a spectacular
bargain:
OMKT's closest competitors, in product, size, and revenues, are BVSN
and VIGN. At the end of this post I've listed comparative figures. They
show that OMKT is expected to have a greater improvement in earnings
than its competitors this quarter yet, despite being comparably sized,
per dollar of revenues OMKT is selling for ONE TENTH the price of its
competitors.
It could easily be argued that both BVSN and VIGN are better company's,
maybe even twice or three times as good as OMKT. However it is
completely impossible to say that they are TEN TIMES better than OMKT,
yet that's how they're priced.
In short, OMKT is so insanely cheap relative to its value, that even if
it QUADRUPLED, it would STILL be a bargain relative to its closest
rivals.
We have seen repeatedly in the last year how panic buying has bid up
some internet stocks to 10 times what they are worth, only to find them
crashing down later.
In the case of OMKT, the reverse has happened. panic selling over the
last few weeks has driven OMKT's price down to 1/10 of what it's worth.
Sooner or later, fundamentals will force the stock to crash back UP.
Here are the numbers. p/s means price/sales, the ratio of stock price
divided by revenues per share. lqeps means last quarter earnings per
share in dollars. nqeps means next quarter earnings per share in
dollars, concensus estimate. impr means improvement, equals
nqeqs-lqeqs, the expected improvement in earnings per share. Data from
Yahoo finance 4/12/00.
BVSN: p/s = 101, lqeps = .03 nqeps = .02 impr = -.01
VIGN: p/s = 88, lqeps = -.06 nqeps = -.05 impr = .01
BVSN: p/s = 9, lqeps = -.09 nqeps = -.07 impr = .02 |
