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Microcap & Penny Stocks : Integrity Incorporated (ITGR) -- Ignore unavailable to you. Want to Upgrade?

To: William Harvey who wrote (14)	8/17/1998 6:24:00 AM
From: William Harvey	Read Replies (1) \| Respond to of 62

I finally got my hands on the article. It's a grabber (Second Coming is the title of the article, Fallen Angel is the title of the monthly column): ITGR is the first company discussed in the magazine. In 45 lines, it tells about what ITGR's earnings have been doing for the last three years, includes quotes from our analyst, Kupinski, and VP Richardson, mentions Kenoly's gold album and repeats the rumor that Gaylord Entertainment is interested in buying the company. The "estimated market value" of $7/share (true market value of all assets minus liabilities) that our analyst from A G Edwards refers may seem a little high. In the recording business it may differ from book value because of prorating contract value with artists signed on at Integrity. In addition the 44k sq ft HQ that remains unfinished isn't a 50 cent/share loss but money in the bank. Individual Investor focuses mainly on large companies. In the index, Integrity sits between IBM and International Paper. Not bad company. So what's the revenue estimate for the rest of the year? Based on the last three years' data ITGR has 52.1% of the revenue in the first two quarters, so we get $34.2M for the year. Based on the average revenue for the second quarter, 23.8% of the revenue is generated in the second quarter so we get $37M for the year. What about the 3rdQ. Over the three years' data, the third quarter comes in as a big one (last year it was the biggest). Because of the recommitment of Integrity to the 'praise and worship' music, we should see revenue stream more like last year, which showed less difference between the quarters. In 1997, there was about a 10% gain in the 3rdQ over the 2ndQ, so we get a projection of $9.6M. I realize these aren't the only logical solutions but the only possible solutions mentioned at this time. Comments? WH