Value Microcaps Free-For-All

[whyme2005]

IPT $0.69 IS STARTING TO GET HOT. KEEP AN EYE ON THIS ONE.

iParty competitor Party City (PCTY) is up big time in AH today after announcing (3/30/05) that it is exploring merger Possibilities. Consolidation in the sector should help IPT ..the cheapest of the bunch at 0.15 X Sales...

http://biz.yahoo.com/ap/050330/party_city_ceo_strategy.html?.v=1

Another positive trend is that Institutions appear to be accumulating IPT lately...

http://thomson.finance.lycos.com/lycos/iwatch/cgi-bin/iw_ticker?t=IPT&am p;amp;range=30&mgp=0&hdate=&x=15&y=10

IPT usually goes up ahead of earnings. 1Q 2005 will be released in little over 2 weeks.

IPT recently reported record revenues and net income for 4Q 2004, and as it is often the case, it was rewarded by a sell-off (sounds familiar?). Investors sold off on the wrong belief that IPT's earnings would go down sustantially when it reports its 1Q 2005 results in April.

IPT is actually poised to post strong 1Q 2005 results for two big reasons:

* Easter, one of the biggest IPT revenue engines falls in 1Q 2005 (March) this year. The Easter-related sales will add substantially to the top and bottom line in 1Q 2005.

* There are 7 more stores compared to 1Q 2004. That will add another $2 million or so to 1Q 2004 totals based on estimated average per store revenues.

What does this mean?...

It simply means that IPT will likely report record 1Q 2005 revenues. Based on the company's current cost structure, IPT will likely report a for 1Q 2005 based. In other words, 1Q 2005 will be a substantial improvement over 1Q 2004.


+++++++++INVESTMENT HIGHLIGHTS:


* Last month IPT reported record revenues of $23.7 Million and record net income of $2.7 Million for 4Q 2004. Fully-diluted market cap is only $24 Million.

* IPT has grown revenues and net income each of the last 4 years.

* IPT has posted a net profit each of the last two years.

* IPT is growing its store number at an average 18%/year.

* IPT's gross margins are among the highest in the sector consistently over 40%.

* IPT pays for new stores with its own cash and a line of credit. NO DILUTION.

* Insiders own 60% of the company. Low Float.

* IPT is Undervalued....trading at P/S of 0.15. Competitor BDAY is trading at P/S of 2.4.


Another way to look at IPT's phenomenal growth rate is to look at some of its statistics:

Revenues: 2004 = $64.3M; 2003 = $56.7M; 2002 = $52.1M; 2001 = $47M

Net Income: 2004 = $1.0M; 2003 = $0.8M; 2002 = $0.7M Loss; 2001 = $2.5M Loss

No. of Stores: 2004 = 45 2003 = 38; 2002 = 32; 2001 = 24

Projected Stores at the end of 2005 = 52...... Projected 2005 revenues of over $70 million!!!


According to Monster com, iParty is hiring heavily for new and existing stores. iParty's employment ads in Monster state:

.."... With aggressive plans underway to essentially double our size and our annual sales of $57 million over the next 5 years, we are inviting motivated management professionals to share in our explosive growth!...."

More on IPT (from PR):

iParty Corp. (AMEX: IPT - news) is a party goods retailer which operates 45 iParty retail stores and licenses the operation of an Internet site for party goods and party planning at www iparty com. With over 20,000 party supplies and costumes and an online party magazine and party-related content, iParty offers consumers a sophisticated, yet fun and easy-to-use, resource with a definitive assortment of products to customize any party, including birthday bashes, Easter get-togethers, graduation parties, summer barbecues, and, of course, Halloween. iParty offers reliable, time-tested knowledge of party-perfect trends, and superior customer service to ensure convenient and comprehensive merchandise selections for every occasion.


Reminder: Always do your own DD. .