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Technology Stocks : Netscape -- Giant Killer or Flash in the Pan?

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To: Michael Abramson who wrote (2422)2/11/1998 7:04:00 PM
From: Leo Francis  Read Replies (1) of 4903
 
Mike, growth is the story when valuations reach 5-6 times projected revenues, with no or little profit. When growth stops, valuations collapse.

Right now, NSCP is trading at about 150-180 times projected 1999 earnings, which is absurd IMO. With no growth, this valuation just won't be maintained. An investor in a company like NSCP entering into these high valuations should be cognizant of growth, and where the revenues are and will be coming from.

Good Trading, LF
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