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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: DAY TRADER who wrote (725)	3/31/1999 8:21:00 AM
From: Kimberly Lee	Respond to of 108040

VMIX has been a weak IPO because it's not seen as an internet stock, rather, it provides goods and merchandise for the major net highflyers.

To: DAY TRADER who wrote (725)	3/31/1999 8:25:00 AM
From: Kimberly Lee	Respond to of 108040

Briefing's take on VMIX VALLEY MEDIA INC (VMIX):Wall Street analysts have gone so far as to dub package delivery company Federal Express an Internet play. When underwriters J.P. Morgan and BancBoston Robertson Stephens initiate coverage of VMIX approximately one month from now, Briefing.com would expect the firms to take a similar stance. With the IPO of Woodland, CA-based music and video distributor, Valley Media, investors will be given an opportunity to participate in the explosive growth of online retailing at a dramatic discount to the stratospheric valuations sported by publicly-traded e-commerce companies. VMIX distributes to more than 6,500 storefront retailers and approximately 100 Internet music and video retailers, including Amazon.com and CDnow. In 1998, the company saw sales to Internet retailers soar 542% to $113 million, accounting for approx. 20% of total sales... Assuming that the deal prices on the high-end of the proposed $12 to $14 range, VMIX would carry a trailing Price/Sales ratio of 0.2, compared to a P/S of more than 30 sported by Amazon.com and 5.17 by CDnow. And although VMIX's gross margin is roughly half that of Amazon.com's, the company managed to turn a profit of $2.6 million or $0.49 a share in 1998, compared to Amazon's 1998 loss of $74.37 million. VMIX has also pursued the growth-through-acquisition strategy that has been so popular among Internet leaders such as Yahoo, Amazon and AOL. VMIX's acquisition binge helped the company expand its top-line by almost 200% in 1998 to $583.49 million. In the prior year period, revenue growth was a far less compelling 27%... Briefing.com does not expect institutional investors to be wild about this offering. VMIX's success as a publicly-traded company is likely to depend on the underwriters' ability to convince daytraders that VMIX is a legitimate Web play. If traders bite on VMIX, you can expect to see a deluge of IPO filings by companies touting themselves as Internet secondary plays.