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Technology Stocks : WAVX Anyone?

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To: Wooly who wrote (9020)9/18/1999 1:54:00 PM
From: 24601  Read Replies (1) of 11417
 
If guys like TexasDude are wrong, then by how much?

market capitalization (assuming deployment)

AOL is said to have about 18 million subscribers.
AOL has 1.1 billion common shares outstanding.
AOL has a market capitalization of $95 billion.
Thus, the market capitalizes the value of AOL at more than $5000 per subscriber.

What if the market were to capitalize the value of Wave on similar bases?
What might we be looking at in 2001?

Assume that Wave deploys only 18 million WaveEnabled devices.
Assume that only one-fifth of those devices develop actual Wave users.
Assume that the market capitalizes the value of Wave at only $2000 per actual user.
Assume that Wave has issued all of its 75 million authorized common shares.
[current publicly traded float is 34m; fully diluted probably exceeds 40m]

On those premises, WAVX would be valued at $96 per share.

In my opinion, these are conservative assumptions, and the market will be able to project the validity of such assumptions before they are borne out by real-time events.

Best wishes,
24601
members.theglobe.com
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