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Technology Stocks : USRX

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To: Meghan Richards who wrote (12136)2/19/1997 6:02:00 PM
From: Eric Prigge   of 18024
 
Meghan,

You need to do a little reading about valuating companies. A P/E of 29 sucks for a bank stock, yes, but not for a dynamic fast growing company (especially one in the networking sector) like USRX. It is priced very nicely right now. There are seldom buy opportunities like this one.

As to the issue of standardizing 56K technology, you are also ignorant. If USRX suceeds in setting the 56K standard the rewards will be enormous. If they fail, or if some independent agency sets a different standard, they upgrade everyones software for free at no loss. This is a Darwinian survival of the fittest thing going on here, like when CBS and NBC were battling over the color TV standard. Unless some independent agency steps in and sets a standard, this is the only way to resolve the technology and market share battle between ROK and USRX.

Eric
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