Market Cap & Revenues Update: AOL vs IMOT vs XNET
Just when we think the relative valuation of XNET can't get more favorable, It does.
Updated Market Cap & Revenues comparison;
XNET vs IMOT vs AOL using share prices from 3/30:
IMOT is a smaller China ISP than XNET with reported revenues of only $140,000 for there 1st 2 quarters of operation & ~$4,000 in profits.
AOL has a Market Cap (MC) of $149 billion, XNET $19 million, IMOT $67 million.
REVENUES Estimate; XNET 1.7 mil, IMOT .28 Mil, AOL 4 bil
MC/R: XNET 11, IMOT 239, AOL 37
P/E: XNET 42, IMOT 8375, AOL 657
Keep an eye on xinnet.net for XNET financial info due out very soon. Site apparently was briefly up yesterday.
Note that our revenues estimates are based on the investor's package from XNET, but have been reviewed by the company with no major changes suggested.
See: Message 8340359
At any rate when the revenues are posted on the new web site (We anticipate sometime within a week), we'll have a more accurate idea. Keep checking @ xinnet.net
The ratios for the Chinese ISP's might be justified in being larger than for AOL, since in the next 5 years there will be a 16 times increase in Internet users in China, and only a 3 times increase in the US. (See chinavista.com )
At any rate, by comparison XNET clearly appears to be undervalued at this current price level.
MC/R ratio may be a more important indicator than P/E, since Top Line growth (Revenue) is probably more important in China at this stage (Like it was to AOL 3-4 yrs ago... remember in 1997 AOL lost $5.22/share). In other words, you would want to sacrifice some earnings to obtain a larger market share in the current Chinese competitive environment.
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