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Technology Stocks : GoTo.com, promising Internet search engine

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To: Brasco One who wrote (211)	7/3/1999 2:16:00 PM
From: Keith Rosenblatt	Read Replies (2) of 977

First, how did you short this stock? It hasn't been available the required 30 days. More importantly, in their registration statement, they indicated revenues of $1.5M for the quarter ended March 31, 1999. If their revenues remain flat, that's $6MM in revenues for a year, or 333x revenues. Fortunately, however, they've almost tripled revenues quarter-to-quarter for the past 4 consecutive quarters. Assuming they only double revenues for the next 4 quarters, they would have revenues each quarter of: $3MM, $6MM, $12MM and $24MM for a total of $45MM in revenues for a one year period. This would put us at 48x forward revenues. It sounds like 2x quarter-to-quarter revenue growth is quite an outlandish expectation, but this early in their existence and with all of the publicity they've been receiving (and with the Netscape deal) I wouldn't be surprised to see even better than that. People aren't paying for past revenue/earnings, they're paying for future revenue/earnings. (Earnings? Not for a while.) I like it. I certainly wouldn't short it, even if I could. That would be insane.

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