International Monetary Systems Featured in Cincinnati Enquirer Article
Columnist States: "Even Big Businesses Barter"
New Berlin, Wis., January 20, 2004 -- International Monetary Systems, Ltd. (OTC BB:INLM), a worldwide leader in corporate and consumer barter services, and its Continental Trade Exchange barter network were featured in an informative article this week in the business section of the Cincinnati Enquirer.
Entitled "Even Big Businesses Barter," the story outlined the many benefits that business and professional people derive through their membership in the CTE barter network. Included were testimonials from several Continental Trade Exchange members.
Columnist John Eckberg stated: "The business-to-business swap--which usually occurs through an association such as International Monetary Systems, headquartered in suburban Milwaukee, Wisconsin--has gained in popularity because it can conserve cash, particularly during lean times." He added, "Part of its appeal these days is that bartering allows goods that would otherwise have to be bought with hard-earned cash to instead be acquired at a wholesale price or the value of a product when measured in overhead costs."
In the article, IMS Senior Vice President Dale Mardak commented, "Many firms find an incremental increase in business as a result of a barter arrangement. Bartering can open the door to new business."
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Source: International Monetary Systems, Ltd.
[BACK]International Monetary Rated 'Speculative/3', With $0.40 Target, Says Investrend Analyst Chui, CFA
New York, January 20, 2004 -- (Investrend Research Syndicate) International Monetary Systems, Inc. (OTC BB: INLM.OB) has been rated "Speculative/3," with a target valuation of $0.40, according to Investrend Research analyst Benjamin P. Chui, CFA, in an Institutional research update, an upgrade from the initial Benchmark coverage.
According to Chui, International's "divestiture of its Canadian operations to focus on the more profitable US market should help improve the financial ratios as well as profit margins, client enrollment is picking up speed, and hit a record in 3Q2003, a good measure of future recurring revenue potential. This is also a good measure of internal growth."
IMS has nearly 6,000 barter customers. There are more than 250 barter system firms in the US, with 200,000 member companies, noted Chui. "We believe the market is ripe for consolidation, and that IMS is well positioned to be one of the eventual top five players in this market that is growing approximately 15% a year, to $3 billion in 10 years."
IMS currently enjoys gross margins exceeding 80%, and IMS is uniquely positioned for global expansion, expansion into vertical markets and more strategic industry acquisitions, he stated.
Chui said that for the nine months in 2003, IMS had $2.9 million revenue, with gross profit of $2.8 million, and has a book value of $2.6 million, of which current assets account for $1 million versus $620,000 liabilities, a "healthy current ratio well above 1."
The company is "approaching breakeven, which can occur in fiscal 2004, assuming they have good control on their costs. The concern is that the biggest cost factor (payroll) is growing at a rate similar to the revenue growth. If the barter trade has the economies of scale similar to say a software company, its earnings would grow disproportionately; thereby a high multiple would be appropriate. However, if IMS cannot enjoy the economies of scale, a significantly lower earnings multiple would be appropriate."
The full report, including important disclosures and disclaimers, is available at http://www.investrendresearch.com, at the company's InvestorPower page at http://www.investrend.com/company/list.asp?sPathParam=yes. Investors are advised to read those disclosures carefully before trading in the equities of any enrolled company.
International Monetary is enrolled in Investrend Research's pioneering professional research program, which facilitates independent analysts to provide coverage for shareholders in companies that otherwise would have little or no analyst following. Enrollment fees for Institutional coverage are $28,300, and the fees were paid by the company. Analysts are paid in advance of initial reports by Investrend Research to eliminate pecuniary interest, and neither the analyst nor anyone associated with Investrend Research may own or trade in the stocks of a company under coverage.
Anyone interested in receiving alerts regarding IMS research should email info@investrend.com with "INLM" in the subject line.
Contact:
Investrend Communications, Inc.
Investrend Research Div.
R. Hempel
(718) 896-5060
Email: info@investrend.com
www.investrendresearch.com
Source: Investrend; International Monetary
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