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Technology Stocks : InfoSpace (INSP): Where GNET went!
INSP 86.70-4.6%Nov 13 3:59 PM EST

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To: KLP who wrote (12268)9/22/1999 3:37:00 PM
From: Robert Rose  Read Replies (1) of 28311
 
Briefly:

<Who makes the determination of "projected sales growth"?.?>

Analysts covering the stock make such projections.

<WHO/WHAT makes the determination for "consensus long-term sales growth projections." >

The consensus would be the average of the LT sales growth projections made by the analysts covering the stock.

<With more conventional (IBM, Coke-Cola, Pepsi, GE), stocks versus the Internet stocks she mentioned...How do these
relate along side the Internet stocks?

Short answer: not much. When the first inets went public (amzn, yhoo, etc.), analysts attempted to apply conventional valuation methods to these stocks. The problem of course was: little or no earnings. As inet stock prices continued to soar through 1998, analysts became increasingly hard-pressed to justify or make sense of these prices. Focusing on Price/Sales as opposed to Price/Earnings was one approach, as these companies had skyrocketing sales, despite losses/modest earnings. As the inets mature as companies, it will be easier to apply the same valuation metrics to them that analysts use to value companies like GE and Coca Cola.
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