Replies to post #152 on Intouch Insight Ltd (INXSF)

[MikeDDKing]

Certainly, there is a basis for that projection. Have you read the company's projection for revenue growth?

As you know, I've followed the stock as long as you have and picked up my initial position at roughly the same time.

[Rawnoc]

Mikey seems to think there's a basis for the dramatic increase.

As you know, not only has Mikey owned the stock for a long time, but he successfully bought shares from the moderator at .15 and under per share.

MikeDDKing
Tuesday, April 12, 2011 7:20:24 PM
Re: SSKILLZ1 post# 239125

Post # of 241552

I strongly disagree with your conclusion on INX.V / INXSF.

They are guiding for Q1 revenue to be 5-8% higher and 2011 to be 25%+ higher. You are right that Q1 is going to be break even but that is because they had to ramp up infrastructure to handle the growth. We should evaluate the company based upon longer term results than just the bottom line for one quarter.

I get $0.025/share/quarter average for Q2-Q4 and I think that is a conservative number because I expect them to exceed the 25% revenue growth number. That is why I rounded up to $0.08/share for the year but I think likely they will beat that. That gives them a forward PE of a little over 4. Please give me 10 other non Chinese companies that have this low of a forward PE and are growing because I would like to buy them all.

Today is April 12th. The company said in their PR: "The company expects 2011 bookings to exceed 2010 revenue by the end of April 2011." It sounds to me like it will be a walk in the park to reach 25% revenue growth. I wouldn't be worried about them hitting their revenue guidance.