Network Peripherals (NPIX) can Lead FastEthernet market??? Message Board

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Technology Stocks : Network Peripherals (NPIX) can Lead FastEthernet market???

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To: andy patel who wrote ()	3/23/1997 9:54:00 PM
From: Noblesse Oblige	of 174

To the "Thread," This is getting grossly overdone. NPIX has declined in value to a current market capitalization of about $ 130, which includes nearly $ 50 million in cash. The market is capitalizing the company at just over $ 80 million (exclusive of cash, including an FDDI business that is worth more than a buck for each dollar of sales, and which now approximate just over $ 40 million annually). Hence, the fast ethernet business (which should comfortably reach $ 25 million in sales this year) is being valued at $ 40 - $ 45 million. Compare that valuation to those of recent acquisitions in private transactions, and it is obvious just how ridiculous the current market is. It appears to me that the stock price is currently being driven by fear and margin calls. Eventually, the value will be the value, and the fast ethernet business is in the very early stages of a significant growth ramp. I will readily admit that it will take substantial effort to grow the company's distribution so that they become a very effective competitor, but that is the same thing that makes it likely they will ultimately sell the company, IMHO.

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