PSIX up 26.5%, Takeover(?) Message Board

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Technology Stocks : PSIX up 26.5%, Takeover(?)

PSIX 63.33

-0.5%

3:59 PM EST

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To: Sung Q. Kim who wrote (89)	5/27/1996 9:11:00 PM
From: Daniel Fisher	of 5650

Sung thanks for the honest reply.I must confess I do have a flaw in some numbers... The revenue numbers for last quarter in SI (yes this fine service) are wrong, and are at $17 Million which puts it at 9 times annualized revenues per share. The shares outstanding are also wrong, there are now 39 Million shares out not 32 Million, which would puts a market cap today at a cool 619 Million. It's interesting to note that almost the entire top line growth last quarter is negated by the increase in shares outstanding. That would put a buyout at $27 over $1 billion, BEL's entire market cap is just $26 Billion. What makes the "intrinsic value" important is what you are counting on is a buy-out. When a company buys another they try to come up with an economic value to them and clearly 600 Million or Billion for that matter is not possible. Why do some of these stocks with no little "intrinsic" value go up? 1. A unique technology which may have unlimited potential (PSI doesn't have it). 2. Lots of hype and little float. Unlike AMTX, PSIX has 39 Million shares out and growing. There has never been a "short squeeze" or lack of supply of shares and there never will be. 3. No earnings to create more uncertainty as to the value (PSIX's got that one) Good luck to you, but thankfully there are plenty of shares (and growing) for everyone.

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