MediaValet Inc V.VRW

RE: Here it is.... cold & cruel

[SurfForWealth]

I have read the earnings report numerous times and agree with some that it was very poorly worded and open to a lot of misinterpretation. I agree with mapleleaf that the steep selloff is unjustified & illogical. The earnings multiple for the stock is now 8.83 based on 53 cents. This for a company that is expected to show very strong earnings growth for 2004 despite how many are interpreting the guidance. My own interpretation of the statement below from the earnings report is that the earnings will grow but grow less than the revenue in 2004 which is guided to grow by "at least 50%". So if the rev grows by only 50% tehn the earnings will grow somewhere between 0%-49%. If the rev grows by 70%, then the earnings will grow by between 0%-69%. The effect of the taxes is to lower the net margins which means that the earnings cannot grow as much as the rev during 2004. In summary I expect strong earnings growth during 2004 & I feel the stock is oversold so I bought more yesterday at 55 cents. "Nonetheless, management expects fiscal 2004 revenues to be at least 50% higher than levels achieved in 2003, with lower income growth due to increased R&D expenditures related to the ongoing development of new business initiatives, increased marketing expenditures, and due to the impact of corporate income taxes." Cheers!!!