XNET and IMOT: a quick comparison...
XNET
1) Outstanding: 14.2 Millions; close: $1.375; Mkt Cap: $19.5 Millions
2) Net Profit: $37,500 for month of January 99 or $450,000 for 1999 (est)
3) Workers: 50 people, but expanding.
IMOT
1) Outstanding: 8.5 Millions; close: $8.375; Mkt Cap: $71 Millions
2) Net profit: about $14,000 in 1998 total. 1999 is unknown.
3) Workers: 30 people as of 23rd March, expanding to 50 during 1999.
My Conclusions
If IMOT is fairly priced by the market, then XNET is UNDERPRICED by a factor of about 3.5. In other words, since XNET, on face value appears as good or better than IMOT, for it to have the same Market Cap as IMOT, you need to multiply its current price by a factor of 3.5:
$1.375 x 3.5 = $4.8
On the face of it then, XNET appears very undervalued when compared to IMOT, so perhaps, when holders of IMOT take out their profits, they should take a good look at XNET.
Caution: this is a superficial analysis, taking into account only some simple figures known about the Companies, in order to give an order of magnitude of the price discrepancy. It could be very misleading due to the lack of intimate knowledge about each company.
Disclaimer: This analysis is for my own use only and only represents my biased opinion as I own 40,000 shares of XNET. No investor should use this analysis for the purpose of investing in either stock but should carry out their own extensive Due Diligence.
Regards. F. Goelo + + +
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