Since I had very little to do today I thought that I would post a comparison of IOTN versus HSOA. I will also post this on IOTN�s msg. Board and maybe start a little ruckus.
Remember, Cramer pimped, or pumped (whichever you prefer) IOTN on Friday, April 27. These numbers are from Yahoo so may not be that accurate but pretty darn close I imagine:
Here we go:
IOTN Mcap $508M Enterprise Value $275.2M Shares out 78.17M (WOW and they call 47M large!) Rev ttm $10M Profit Margin �174.62% Operating Margin � 145.01% Debt $77K (nil) Operating cash flow �8.18M Leveraged Cash flow �3.5M Book Value 0.44 Now here is your Kicker� P/E �Negative, no earnings and maybe 1 or 2 Gov. contracts. Price to sales 39.67 (WOW!) Price to Book 11.49 (WOW again!)
HSOA Mcap $227.15M Enterprise Value $275.2M Shares out 47.32M Rev ttm $127.22M Profit Margin 14% Operating Margin 24% Debt $51.56M (manageable considering recent acquisitions, i.e. growth and $100M backlog) Operating cash flow �$12.51M (again growth pains) Leveraged Free Cash -$21.81M (Same, as we all know acquisition, and fast Co. growth causes this and becomes positive once synergies are realized) Book Value $3.04 Kicker� P/E 6.08 Price to Sales 1.83 Price to Book 2.16
Now, you tell me which one is the better company to invest in? IOTN, take your profits now and move on to a real company that has real earnings. You can always come back to IOTN, but wait until there are contracts in place and the start earning revenue. This is a 20% gift from Cramer so don�t let it slip by.
Disclosure � no investment in IOTN, investor in HSOA.