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Gold/Mining/Energy : Microforum (MCF:TSE)
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To: Rocket Red who wrote (655)1/30/1999 11:48:00 AM
From: J. Plantinga  Read Replies (3) of 3896
 
Some of you should do a little research and find out how things work before performing last rites on companies growing at 500%.

Take as an example BII(Bid.Com). They posted Q3 numbers at the end of Oct. Revenue for 9 months was up over 1000%, from about 1Million to over 13Million. Net losses almost quadrupled from -3.6Million in 1997 to -12.8Million in 1998. The stock was at $1.20 when the financials came out and has seen the sunny side of $9.00 since then. It closed above $7.00 on Friday.

Another example is UTO (Uniglobe Travel Online). 3rd Quarter revenues were almost 800% higher than 1st Quarter, but net losses were virtually unchanged. UTO was below $2.00 when the financials were release in the fall, has since topped out above $10.00, and currently resides around $7.00.

Growth costs money, the moreso when it's at the rates these companies are growing. Eventually they reach a critical mass and can stop putting all of their resources into growing their revenues and start focusing on improving operating efficiencies, cutting costs, and increasing margins.

Guess we'll have to wait and see what the markets have to say on Monday...and three months from now. But if BII and UTO (and dozens of others) are any indication, there'll be a few people (from this thread) kicking themselves 3 months from now looking at the January price they could have bought at.

Over and out,
JP
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