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Non-Tech : Valley Media (VMIX) IPO

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To: capitalistbeatnik who wrote ()5/23/1999 5:01:00 PM
From: Paul Hackett  Read Replies (1) of 298
 
VMIX Earnings Per Share

Last Quarter (Mar 1999)0.21
Surprise 10.53 %
Consensus Estimates
This Quarter
(Jun 99) n/a
This Year
(Mar 00) .96
Next Year 1.63

Valley Media: rev. growth >50% annually
.....New Media rev. growth > 500% annually
.....EPS growth approx. 70% annually
.....already operating at a profit with a P/E of approx. 28

These numbers do not make sense. A lot of room for upside potential, esp. considering the majority of VMIX revs. within the next two years will come from electronic commerce related sales. I do believe that VMIX will break out of this 20-30 range soon.

The markets have not been reacting positively to companies which only marginally beat the Street estimates. That was the case with AMZN and CDNW, also. It's ironic that the Street only considers VMIX an Internet play when considering earnings reports.
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