Valley Media (VMIX) IPO Message Board

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Non-Tech : Valley Media (VMIX) IPO

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To: DAY TRADER who wrote (34)	4/2/1999 4:23:00 PM
From: Blue On Black	Read Replies (1) of 298

Agreed. A couple of things from briefing.com caught my attention... In 1998, the company saw sales to Internet retailers soar 542% t0 113 million, accounting for approx. 20% of total sales... Assuming that the deal prices on the high-end 0f the proposed $12 to $14 range, VMIX would carry a trailing Price/Sales ratio of 0.2, compared to a P/S of more that 30 sported by Amazon.com and 5.17 by CDNow. And although VMIX's gross margin is roughly half that of Amazon.com's, the company managed to turn a profit of $2.6 million or $0.49 a share, compared to Amazon.com's loss of $74.37 million. Okay. Sounds good. I like to count on the greed factor, too. Briefing.com concludes... VMIX's success as a publicly-traded company is likely to depend on the underwriters' ability to convince daytraders that VMIX is a legitimate Web play. If traders bite on VMIX, you can expect to see a deluge of IPO filings by companies touting themselves as Internet secondary plays. Interesting. Considering that VMIX supplies 6500 storefront locations and approx. 100 'Etailers', I would say that the connection is there. At any rate, has there been a problem lately convincing daytraders on any internet connection? Does this make it in the underwriters best interest to encourage success, thusly encouraging this deluge of secondary IPOs? Way too early to sell IMO. lee

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