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Alias Born 09/26/2010

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Thursday, 10/14/2010 9:50:31 AM

Thursday, October 14, 2010 9:50:31 AM

Post# of 59
INFORMATION ANALYSIS INC. GOVERNMENT CONTRACTS AND FINANCIAL STABILITY

This is not a talked about company among stock pickers, there is no hype around it but it works great in creating value for the smarter few. How come? This is how:
Information Analysis Incorporated (IAI) is in the business of modernizing client information systems, developing and maintaining information technology systems, and performing consulting services to government and commercial organizations. IAI has performed software development and conversion projects for over 100 commercial and government customers including Computer Sciences Corporation, IBM, Computer Associates, MCI, Sprint, Citibank, United States Department of Homeland Security, United States Treasury Department, United States Department of Agriculture, United States Department of Energy, United States Army, United States Air Force, United States Department of Veterans Affairs, and the Federal Deposit Insurance Corporation. The Company primarily applies its technology, services and experience to legacy software migration and modernization for commercial companies and government agencies, and to developing Web-based solutions for agencies of the federal government.
The (IAIC.OB) was founded in 1979 when I was 2 years old and (IBM) was about $15 a share or $25,000,000,000 market cap, about 800% return till today, reinvested dividend return 1750%
Many things have changed since then in IT industry and many will change, that's why IAI is a right choice at the right time. Competition is fierce in Business Software & Services sector, there will be many losers and winners just like in any other market theme but if you have to decide where to invests few pennies in IBM or IAIC, go for less to get more. As you see from the title this is about stability.
Once this stock was worth $300,000,000 today $2,000,000 for the same balance sheet, same amount of shares outstanding, same revenues. Well, it was overvalued back then and somebody lost $298,000,000, on the other hand somebody who buys now will make few millions $ or more. It all depends.

WTFact
Market Cap $2M
Shares Outstanding 11,200,000 (increased by only 1,500,000 shares in 10 years)
P/E 5
Price/Sales 0.26 (yes, they sell 4 times more than current market cap)
Return on Assets and Equity are positive, 9% and 24% (very good managed from any perspective)
Revenue $7.6M
Quarterly Revenue Growth 20%
Profit $2M
EBITDA $422K
EPS $0.04
Quarterly Earnings Growth 1200%
Cash $1.9M (market cap equals cash for info tech stock)
LT Debt $0
Insiders Own up to 20% plus there are other 116 shareholders
Total Assets $3.1M
Total Liabilities $1.4M

Resume: Numbers talk, you walk.


Sleeping for 10 years smile




http://www.infoa.com/Government_Clients.php



When we hang the capitalists they will sell us the rope we use.