SCF worth $622 per share
Hi, i have recently completed a "polyanna" analysis of
what i feel is a reasonable estimate of the share price potential of SCF over the next two years.
I have chosen a company in the same business as a basis.
Inktomi (INKT).
The following analysis assume that SCF will "do as well"
as INKT.
ticker - shares - p/e - market cap - price
INKT - 48.9M - Nil - 5.6B - 114
SCF - 4.5 M - 66 - 200M - 622
Note SCF P/e ratio takes into account recent 0.68/share result.
SCF at $45 is about 1/14 or 7% of this value.
I believe the growth potential of SCF's global caching business is without limit.
I am please to see Mirror Image "jump into bed" with
Oracle (ORCL) technology. I know a lot about Oracle Database management systems and they are #1. Way ahead of the field including Microsofts (MSFT) product called Sql Server; IBM s product called Db2 and Sybases (SYBS) Sql offerings.
At this point, i am curious to see just who are the "backers" financing Mirror Images worldwide expansion.
Could one "good guy" be Oracle or Cisco (CSCO) or Lucent (LU) or Newbridge Networks (NN) or a media player like (CBS)?
One thing that has intrigued me is the Advertising Substitution concept that the Mirror Image management suggested in an earlier press release. Basically,
on pages served up from its global cache servers, Mirror Image can substitute noncontent items like banner adds
( we all know what they are) for a fee.
For example, say Amazon AMZN hires Mirror Image and pays them:
$0.01 for every page they serve off the Global Cache server with an existing Amazon banner,
$0.02 for every served page in which they substitute an amazon banner for competitors like borders, barnes & noble or Books-a-million banner.
Of course this "star wars" like ruthless competition can lead to "bidding wars" and be sold to thousands of "deep pockets" but otherwise bumbling internet outfits like (IBM), etc.
With thousands of Global "cache" servers in operation, the potential of these servers grabbing a strangle hold on e-commerce and becoming 24/7/365 Global "cash" machines is mind boggling!
Also, as Mirror Image grows,it blossoms into a very nice commodity for the "shopping basket" of some kingsize tuna such as CSCO, LU, NN, CBS or even MSFT or IBM (yes 'cuz they want to dominate the web!)
so much for this dialog.
Gud luck to all day traders and short sellers like Mr. Wang.
SCF should have many excessive "run ups" as it climbs its "wall of worry" and u can do well if ur patient.
sincerely,
paul
PS: I am a shareholder of SCF, ORCL, MSFT, SYBS, AMZN, CBS |
