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Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: J Bertrand who wrote (9554)	2/19/1998 10:24:00 AM
From: AmericanDane	Respond to of 14631

During a turnaround one often gets these extra high PEs when the company goes from a loss to a profit. After all, earning .01 per share on an $8 stock is an 800 PE. I think Bob F.'s 'still lots to do' challenge is getting the top line moving. He really did a nice job getting the expense picture in place. But the real convincing that still needs to be done is that IFMX can grow sales at least as fast as the industry. Last qtr's numbers remember were down year against year. Once IFMX stabilizes market share (or even grows it!), the company will see excellent profit leverage against this new lower cost base, and I think this is the big question IFMX must answer -- and that Wall Street wants answered.

To: J Bertrand who wrote (9554)	2/19/1998 10:31:00 AM
From: Gregg	Read Replies (1) \| Respond to of 14631

Remember one thing, it's not what the company is doing now, it's the future earnings potential that causes investment firms to put buys on different companies. IFMX was at $20 before it went to $4.00. I know when it was at $20 it had a high P/E. The P/E means nothing when your dealing with a quality company. It's amateur investors that get worried with high P/E's. The real investors don't care, as long as the company is growing at a good rate each year. Eventually the earnings will catch up to the P/E.