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Strategies & Market Trends : ZixIt Corporation (ZIXI) -- Ignore unavailable to you. Want to Upgrade?


To: Bob Trocchi who wrote (2932)8/31/2000 5:38:25 PM
From: Craig Richards  Read Replies (2) | Respond to of 4120
 
Bob,
What's surprising to me is the market cap of ZIXI with so little revenues. Although you mention that it is easy to have a ratio as high as ZIXI's, there is only one company with a higher ratio. I think this is because most companies that trade publicly have more revenues. If they have been public for a short time with low revenues, their price usually declines before insiders are unlocked from selling shares. ZIXI is in an unusual position in that it has been public for a long time with almost no revenues, yet still has a relatively large market cap. I think the reason the ratio I published is meaningful is precisely because ZIXI does not have any real sustainable revenue, yet its insiders have sold so much stock already.

Craig