HOLY SMOKE!!!! LOOK AT THOSE EARNINGS AND REVENUE!! LOAX Reports First Quarter 1999 Financial Results June 3, 1999 8:27 AM EDT
Revenue for the 1999 first quarter was $238,644, compared to $169,873 for the first quarter of 1998. The net loss for the 1999 first quarter was $188,021, or $0.04 per share, compared to a loss of $27,460, or $0.01 per share, in the first quarter of 1998. ISP REVENUE HERE (which is becoming price sensitive, with eroding margins and a differentiator required to maintain market share)
ISP Revenue - Quarterly Revenue X 4 Quarters = 952K Yearly Run Rate
952K X 10 (10 is Probably the highest multiple of revenue EVER paid for any ISP on an acquisition and this would be paid with stock as opposed to the cash people are shelling out to buy shares of LOAX at$ $16-normal multiple is 1.3-3 X Yearly revenue run rate)= 9.52M
9.52Million + 20M in cash= ~30M valuation.
LOAX Current Market Value = 112M
LOAX Target Share price $4.41. I'll have to add .05 into the valuation because of the excellent management team (sales rep), top notch investors backing the deal (see Barron's article for details here), strength of the underwriting firm (history of down deals), financial analyst coverage (zero), strong institutional ownership (zero), and telecom experience (paltry) to bring the price to $4.46. SOMEONE PLEASE POST A REASON TO UP MY ESTIMATE ON LOAX'S VALUATION!
The stock has a long way to go before it comes down to its true value. See you at five bucks. In one year, you'll be thumbing through the pink sheets to find buyers and sellers on LOAX.
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