I prefer 'Use the float Luke, the float'
IMSG, I rather liked this synopsis provided by jbarnsley. Don't ask where I got it.
Mere speculation
by: JBarnsley
1/14/00 1:12 pm
Msg: 373 of 373
To address the market interest question first, IMSG has such a small float (1.6 million) and total issue that it wouldn't take much to increase the price of the shares, and
only a small increase in earnings shows up dramatically in per share data.
The previous quarter (Q2, ending Oct. 31) had modest sales of $1,503,336, on which the company reported break even results. Of course at the same they were making early
repayment on their mortgage. Moving into the current quarter (Q3, ending Jan. 31) and, maybe more significantly, Q4, ending April 30, we have these possible results:
- Revenues from the increased orders reported in October.
- Revenues from the quarter-million space station contract, which I don't believe has shown up yet.
- Revenues from the half-million dollars in new orders reported for the first 11 days of November.
- Revenues from the DOD contract for monitors to be installed in the Navy's mine sweeper fleet, which I don't believe has shown up yet.
- Revenues from the Northwest Airlines contract and the related FAA sales.
- Revenues from new orders that resulted from the increased attendance at the Radiological show in Chicago.
We were told by the company that the increased orders in October would positively affect Q3 and Q4. This provides some indication as to the production and eventual
payment period. Presumedly some of the recent increases will positively affect not this quarter, but Q4 and Q1.
We've also had some encouraging increases in sales personnel, an investment toward future earnings, but with cost. Then there is the acquisition of Nortech's imaging
division, again an investment toward future earnings, but with costs.
My speculation is that the company will report encouraging earnings for Q3, and significant increases in Q4.
What we do know is that fiscal management of the company has been exemplary. Debt is limited to a mortgage on new facilities. S/G/A expenses have been carefully
contained, and orders are dramatically up, and show every sign of continuing to increase.
JB |
