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Non-Tech : Valley Media (VMIX) IPO -- Ignore unavailable to you. Want to Upgrade?

To: Paul Hackett who wrote (36)	4/3/1999 2:38:00 PM
From: Mr. Big	Read Replies (1) \| Respond to of 298

VMIX target is $50 - more details here --> In 1998, the company saw sales to Internet retailers soar 542% to 113 million, accounting for approx. 20% of total sales(New Media, our Internet sales, support and data division, is our fastest growing business. Its revenues increased 542%, from $17.6 million in the nine months ended December 1997 to $113.0 million in the corresponding period of 1998. Access to our extensive catalog is particularly valuable to on-line retailers as their customers tend to buy higher proportions of deep catalog titles relative to hits than do traditional shoppers. We have developed databases that serve as an integral part of Internet retailers' product information and ordering systems. Our value-added services enable Internet retailers to outsource operating capabilities instead of making the substantial investment to build their own inventories and infrastructure.) Assuming that the deal prices on the high-end 0f the proposed $12 to $14 range, VMIX would carry a trailing Price/Sales ratio of 0.2, compared to a P/S of more that 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, compared to Amazon.com's loss of $74.37 million. 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. Considering that VMIX supplies 6500 storefront locations and approx. 100 'Etailers', I would say that the connection is there. only a 3.5 million share float valley-media.com