Andy,
<<1Q'96: expect: .....0.15(flat) or 0.21
From the above number, I see that IOMG has to make 0.21 for this quater. Otherwise, earning will not growth
consistently. If it is 0.15/S, it may cause more problems on the stock price.
For a high flying stock like IOMG, if the earning is flat, the stock could off 40% in one day.. like LSI logic,
CRUS... What do you think about this?>>
Andy, As I said in earlier posts, my estimate are actually slightly higher than the 15 cents AVERAGE from the AOL baord. The 15 cents or13 cents or 19 cents doesn't really matter from the prospective of a bear. The reason being is that the streets estimate is about 11 cents per share from Zacks and H & Q (people who have seen their books and in the know). I suspect, and its just wild-ass speculation on my part, that the H & Q numers are slightly low so that IOMG would be sure to beat their estimates. I believe this because IOMG still needs cash, (who doesn't). Recall, the secondary offering is only postphoned, not cancelled. I believe IOMG will make another attempt at the secondary to raise cash. Thus, for the secondary to be successful, they must beat the 11 cents EPS...and they will.
Recall my reasoning for the difficulty in estimating the expense side of the business. Here is a point I forget to mention (at lease on this board) is that the number of Ditto drives may surprise even the analyst because of teh IOMG Ads, which by the way are quite effective.
cheers.
P.S. Andy, I hope this helps. If you are shorting...god bless you for allowing we (the royal we...the longs) for taking your money.
chester |
