Friday, August 10, 2007

i2 Technologies Inc.

i2 Technologies Inc. is a NASDAQ listed security that has been trading in a range between $13.25 and $27.46 over the past year. With 21,200,440 shares outstanding, a recent price of $16.44 gives a total market capitalization of $339,631,059. While there are certainly larger companies, i2 Technologies Inc. has definitely earned its place in the pack. Last year, i2 Technologies Inc. created $0.90 in earnings for every share outstanding.

i2 Technologies Inc. is currently priced by the market at 18.30 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, i2 Technologies Inc. could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.

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