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

To: Constance K. Landis who wrote (498)	11/11/1997 6:52:00 PM
From: Jay Morrison	Respond to of 665

Constance mumbled: <<How can you possibly even consider comparing IMGX to these other stocks?>> Because IMGX is a stock that is very similar to those stocks. You should re-read everything written previously so that you better understand the details. Your entire post demonstrates that you do not. <<No analyst worth a damn is going to promote this stock or for that matter any stock that perpetuates continued losses.>> That is not true. I have seen many companies perpetuate losses and be covered. Apple comes to mind. <<Even mentioning it in the same vein with Microsoft is absolutely ridiculous. Come back to reality.>> Once again, you missed the point of WHY it was mentioned. MSFT and the others were mentioned to demonstrate that software companies can trade anywhere between 5x sales to as high as 10x sales. MSFT is currently 10x sales. FILE is currently 5.8x sales, but has been as high as 10x sales. There is nothing that is special about how Microsoft is judged. It is priced exactly the same as other software companies. By p/e and by revenue. They are simply the biggest. Using MSFT as an example is logical assuming that IMGX is a growth story. You failed to understand the basic concept that domestic (non-Dorotech) sales are growing and growing quite well. Dorotech will be gone by next month in my opinion. Q4 results will likely be stated in terms of IMGX only without Dorotech. US revenue last quarter was $6.5 million. It will at least be $7.4 million next quarter (Zannett target) and is likely to be around $8 million. That is a growth company that deserves to be rated as other software growth companies. Jay

To: Constance K. Landis who wrote (498)	11/11/1997 7:06:00 PM
From: Jay Morrison	Read Replies (2) \| Respond to of 665

Constance rambled: <<Leto talked last year about increasing their sales force and ramping up a marketing effort. Short of hiring the guy associated with government contracts what have they done?>> They hired 6 new sales people in the past quarter. If you had bothered to listen to the conference call you would understand all of this. <<Yeah, yeah I know he's now generating sales in the government sector to the tune of a projected $3.5 million. But again, be realistic. That is less than 1/10 of what they need (in your estimation) to become profitable. Where is the remaining $37 million coming from?>> According to the last conference call (which you clearly missed) the pipeline for the government side is $17.5 million, of which, $3 million could happen at any moment. This is a part of the overall $81 million pipeline. The $81 million pipeline is where the revenue will come from. Rougly half of the pipeline will get converted to revenue. I think the lasted analyst estimate was $43 million in revenue for 1998. (US sales only) That is a profitable year by about 5 cents per share. <<As for their stocks value, why does it continue to stagnate and as it did yesterday, fall with little trade volume?>> It is stagnating because currently IMGX is part of Dorotech and when the US side has a good quarter, nobody notices since Dorotech clouds the picture. THAT is why Dorotech is history. Once it is gone, all results can be stated compared to the previous year for US sales only. Those comparisons will make it easier for the growth picture to be seen. <<Leto needs to address this challange or be lanquished for someone else who can.>> That is the most rediculous statement you have made to date. Leto is the only reason the company is currently getting it's act together. I can tell you that Kessick has nothing to do with it. I suggest you look more closely at the situation before you start spouting such nonsense in the future. Jay