Friday, August 10, 2007

I-Many Inc.

I-Many Inc. is a NASDAQ listed security that has been trading in a range between $1.40 and $2.76 over the past year. With 51,949,400 shares outstanding, a recent price of $2.32 gives a total market capitalization of $119,483,618. While there are certainly larger companies, I-Many Inc. has definitely earned its place in the pack. Last year, I-Many Inc. created $-0.35 in earnings for every share outstanding.

I-Many Inc. is currently priced by the market at 0.00 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, I-Many Inc. is unlikely to be an interesting value proposition. Consistent earnings are the key to high valuations and this security is not on its way.