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Microcap & Penny Stocks : IMGX, currently $3.50 -- Ignore unavailable to you. Want to Upgrade?

To: Green 6 who wrote (491)	11/7/1997 7:48:00 PM
From: Jay Morrison	Respond to of 665

It seems like ODIS is the closest company from the standpoint of shares outstanding, earnings that we are likely to have next year, growth rates, etc. The PE is not really relevant since it can be so volatile for companies with low earnings (less than 10 cents). The sales multiple of 5.8x sales is good. If that were the case with IMGX and lets say they average $10 million per quarter next year, which is breaking even. $40 million US sales for the year (low estimate) x 5.8 = $232 million market cap. Divided by 34 million shares outstanding = $6.80 per share. That is exactly what you were saying when you estimated seeing the stock about $7 next year. I agree. Jay

To: Green 6 who wrote (491)	11/7/1997 7:54:00 PM
From: Jay Morrison	Read Replies (1) \| Respond to of 665

Also, the ODIS high was $16 and the current price is $10, so it has traded as high as 10x sales or better within the past year. These types of stocks can really explode when they do start moving. Microsoft is currently trading at 10x sales. I am not claiming that IMGX is a Microsoft, but I am pointing it out so that people realize that fast growing software companies can reach that kind of sales multiple. But this is all wishful thinking on my part. Jay (dreaming of $4 per share)