frankposting

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    • Wed Aug 22nd 00:19 AM | Rating: 0 0
      Commented on:
      Xinhua Finance Media: Positive Developments Ahead
      Let's do some math.

      For 2Q07, the revenue was $29.0M and EBITDA was $9.1M, thus the gross margin was 31% -- almost inline with the cpmpetitors -- not bad. However, the adjusted net was only $2.8M, i.e., the operation margin was only 10% -- too low.

      If the revenue for 3Q07 can reach the consensus ($38M), XFML needs 22% operation margin to meet the current estimated EPS ($0.12).

      For the year 2007, XFML needs 27% overall operation margin (wrt $130M revenue) to meet the current estimated EPS ($0.35).

      I believe that XFML will have difficulties to achieve those expectations. Better to add XFML's own earning outlook on revenue outlook. Otherwise, low pps will continue to hunt XFML.
      View article »
    • Sat Aug 18th 15:53 PM | Rating: 0 0
      Commented on:
      Xinhua Finance Media: Positive Developments Ahead
      Fredy Bush sacrified EPS to achieve growth. Good for long-term. However, taking shareholders' interest (both long-term and short-term) into account, a good balance is very important. The analysts always push for EPS. An alternative is to add earning outlook on revenue outlook to avoid wildly inflatted EPS estimates from those unfriendly analysts.
      View article »
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