P.S.
in addition to the many considerations pointing to IQ's apparent undervaluation, one can also look at its "enterprise value" which is a measurement usually used by bottom fishers for companies in trouble--which IQ gives no indication whatsoever of being. one might refer to enterprise value as a rock bottom price for a takover.
IQ's current enterprise value--based on last quarter's figures, and annualizing last quarter's revenue per share, would be approximately $2.13 (cash plus short term investments) and $5.08 ($1.27 X 4) to arrive at $7.21.
as I said, this measurement of value is usually used for companies on the skids, and not for companies like IQ which look to be on the ascendancy. even so, we are not far above enterprise value now.
best regards.
P.PS. IQ has a current ratio of over six to one. as a former accountant I can tell you that two to one is generally considered safe, and many companies fall below that! additionally, IQ has virtually no debt. it is now selling for less than twice book, a rediculous valuation for a software concern. don't panic! keep calm, and take advantage of a rare opportunity. if I have to see shares from one of my high fliers to buy more, or at least to maintain my position, I will. |
