"EPS 11c - Is that good enough?"
Apparently not good enough for folks on SI and AOL MF. I personally
thought that revenue would be significantly higher. (I didn't really care
that much about EPS at this point, since IOMG can easily make this
number much higher or lower - depending on how much they want to
spend on fueling future growth). But apparently, many of us underestimated
supply problems for Zip and Jaz and overestimated IOMG 's ability to
ramp up productions in neck-breaking paces. These problems may have been
resolved very recently. We'll have to wait for details from the conference call.
But as far as institutional investors with longterm views, the announced results
may be plenty good enough. By any standard, the last couple announcements
coupled with 500% revenue and 1300% EPS increase over previous year,
29% and 38% revenue and EPS increase over previous quarter are proofs of
tremendous accelerating growth rate and an extremely bright future. This
kind of growth is quite rare among companies with hundreds of millions
revenue/year in present or past.
As I said before, longterm investors are well served by keeping shorterm
expectations low, creating chances for nice surprises. We may have done the
shorts a big favor and ourselves a disservice by creating too high expectations in
the shorterm and not leaving enough room for errors. I myself, admitedly, am
also guilty of getting caught up in this wind in all the excitements.
Having said all that, the IOMG story and longterm outlook have changed in
this past quarter and actually have gotten much more positive. The fundamentals
could not be better! A low price now only means more chance for accumulation
and a higher gain in the long run.
I would have loved to see the shorts fried though. But with EPS only 10%
over estimate, the shorts will get off pretty easy this time. (BTW, when I say
"shorts", I mean big brokerages, funds, and institutions with lots of muscle
to manipulate stocks, not the little individual investors.)
Finally, my hat off to H&Q and JPM folks for being very close with their estimates.
Young
I think most of us
believe that revenue will be above 300 mils We have been |
