Eric,
RMII continues to acquire internet companies at very reasonable prices. RMII's average purchase price for internet companies is 1 X yearly revenues. $22.8 million to purchase nine companies with $21 million in yearly revenue.
With many internet companies similar to RMII are trading at 25 x year revenues, 1 x yearly revenues looks god to me.
In a market comparison of *share price / annual revenue*
RMII compares very favorably to their competition. As RMII revenues are growing by leaps and bounds.
Through acquisitions RMII continues to expand their customers, add revenues and increase the number of internet services they offer. RMII currently offers;
1. 7 cents a minute Internet long distance telephone service,
2. Internet service provider
3. High speed internet access
4. Dedicated high speed data transmission
5. E-commerce and Web hosting
6. E-commerce and Website production
7. Portal site and search engine
8. new web domain naming via Dave's World
I am pleased that RMII continues to make these acquisitions with company stock and has not accumulated large amounts of debt making these acquisitions.
per Yahoo news release, "the following is a list of the companies acquired in the past year by
RMI.NET:
Annualized
Purchase Revenue
Date Company Location Price Run Rate
1998
June 5 Infohiway(1) Aurora, Colo. $1.34 million n/a
July 1 Application
Methods(2) Seattle $3.24 million $1.70 million
Nov. 11 InternetNow! Phoenix $1.88 million $1.20 million
Nov. 24 Unicom Overland
Internet Park, Kans. $1.70 million $1.00 million
Dec. 1 Stonehenge
Internet Denver $750,000 $650,000
Dec. 9 DataXchange(3) Washington, D.C. $4.30 million $2.00 million
TOTAL $13.2 million $6.55 million
1999
Feb. 2 Dave's World Bloomington, Ill. $3.00 million $1.90 million
Feb. 9 CNS(4) Opelika, Ala. $560,000 $3.60 million
June 10 Internet
Connect Salt Lake City $1.50 million $1.20 million
June 11 IdealDial(4) Denver $1.74 million $6.70 million
June 16 Colo. Steamboat
Mountain Net Spr., Colo. $970,000 $675,000
June 23 CommerceGate(2)Seattle $1.25 million n/a
June 25 Interaction
On-Line Peoria, Ill. $570,000 $385,000
TOTAL $9.59 million $14.5 million
12-MONTH TOTAL $22.8 million $21.0 million
(1) Portal Site and Search Engine;
(2) E-commerce, Software Development Company;
(3) Tier 1 Internet Backbone Provider;
(4) Enhanced Voice Services Providers. "
Any thoughts on the low share price, concern for cash flow? operating loss? lack of analyst coverage? undiscovered???
I have been selling RMII covered calls with a $15 strike price to make a little money, as we continue to tread water........
have a good weekend.
John |
