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Microcap & Penny Stocks : MDI Entertainment (MDIH) -- Ignore unavailable to you. Want to Upgrade?


To: MDIH-Fan who wrote (368)4/29/1999 9:31:00 PM
From: Timothy R. West  Read Replies (2) | Respond to of 563
 
Please tell me what you have seen in the way of block activity. Big pieces have traded on up-ticks? What exactly sparks your interest or indicates smart money is buying as opposed to smart money selling?

MDIH has a clear pattern of topping right after the earnings report and giving back a substantial portion of the gains. Already you are seeing volume dry up as investor enthusiasm wanes after the earnings release.

Also, not all internet generated sales gets high PSR's (Price-to-sales-ratio). Look at EGGS (Egghead) or PPOD (Peapod) who have only 1-3 times sales, but have rapidly ramping revenues to make up for the lack of profits.

Does MDIH have the prospect of rapidly ramping sales or should we target a 10 times multiple on these earnings?

I'm looking forward to your insights on the block activity.

Thanks in advance.

Tim