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Technology Stocks : Red Hat Software Inc. (Nasdq-RHAT)

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To: ynot who wrote (802)8/25/1999 1:57:00 AM
From: Pink Minion  Read Replies (1) of 1794
 
RHAT is a turd, goes to low $20's, for many reasons

I don't think anyone is trying to justify the market cap, just that this is not a turd.

Every long should know that to value this compoany like a consulting firm (Keane or EDS), it should have a market cap of 100 to 120 million. This considering their growth and cash. Heck, in this market, give them 10 times sales and a 200 market cap. So at 66 million shares this stock is worth a buck fifty to a generous $2.50.

Or you could also bet that this has the makings of a short squeeze because most of the shorters are clueless about software. Most are shorting because it is overvalued on their perception. Most are large MSFT holders and think Windows 2000 will be out any day now. Bug free, too! They also think Intel really likes Microsoft and wants to be good buddies with them. Those Intel engineers just love working with Windows. Most shorters keep harping on the free Linux stuff like us idiot longs don't know.

Ynot is the same idiot who thinks there is no way Linux will overtake Window's NT. He also thinks Linux is "just another version of Unix". He thinks Linux is just some fad.

My analysis of ynot is of a typical Dilbert point hair. Probably started out on mainframes when Billy was stealing his first program. Went into management in the 80's and invested in MSFT in 92-93. He could retire now but that would mean spending all day with the wife. Spends all day reading SI, doing charts and attending meetings.

MH
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