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

To: lindend who wrote (4057)	12/26/2003 11:07:14 AM
From: Bob Trocchi	Read Replies (1) \| Respond to of 4120

Update on the Stupid Investment of the Week... Chuck Jaffee, a business writer and commentator some six months ago listed ZIX as a "Stupid Investment of the week." Today he issued a commentary on some of his "Stupid Picks." His complete commentary can be found at: marketwatch.com Cheers and Happy New Year. Bob T. >>My worst mistakes came when singling out stocks. I said in May that Zix Corp. (ZIXI: news, chart, profile) was likely to run out of cash in six months. I discounted the company's business prospects and dismissed it as a "concept stock" with a "great idea but no visible means to turn a profit on it." Today, Zix is up about 50 percent from when I first wrote about it (at one point, it had doubled), and sales are on the rise. An optimist would suggest that the company appears to have cracked the nut here, giving it a real chance to make it. The short-sellers that plagued the stock in May are still there -- some of the price run might have been caused by a short squeeze -- and the price-to-sales ratio remains extreme at 40-to-1. The company still gets a financial health grade of F from Morningstar, but its growth prospects have improved (Morningstar gives the firm an A for growth). Put it together and you are still looking at a company that probably doesn't belong in the portfolio of that average investor, but neither does it belong in the pantheon of stupid investments. The impending collapse I called for not only hasn't happened, but it looks much more unlikely today than I could have imagined seven months ago.<<