How are you doing, Art?
I think that SEPR has fallen into its own, most peculiar valuation limbo somewhere betwixt and between River Styx, .com mania, cloud koo koo land and, most nearly, how did the Beatles' Revolver song go, Nowhere Man? Most ironic and paradoxical:
--Here we have investors all over the planet falling over themselves to invest in and bid up the prices of a slew of start-ups that have a putative business model (maybe), a dream of the net over all (could well be) and not a prayer of earnings until kingdom come.
--We also have companies with real earnings whose analyst coverage is about now, assuming a calendar fiscal, beginning to apply EPS multiples to Y2K earnings estimates (discounting in reverse) to divine price targets.
--We have SEPR which falls into none of the above but as to which analysts are talking about discounting an as yet unrealized earnings stream with some substantial and credible basis to believe is going to become a lollapalooza. So if you take $2.60 for 2001, impute a multiple on future years, but discount to May 1999, you get...SEPR on a temporary treadmill. Regards. Steven |
