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Non-Tech : Amati investors

AMTX 1.630

+1.9%

3:59 PM EST

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To: SteveG who wrote (14300)	4/15/1997 12:19:00 PM
From: j rector	of 31386

>>But those that DO, usually more than make up for the other losses. So we will see what AMTX can do. In the meantime, what is fair market value for a stock without earnings for 2 more years? Steve, it depends on projected earnings. AMTX is doing about 30-40 million this year in revenues. Lets say we have 100% revenue growth for 2 years--looks like at 20% margins you would have about 20-30 million in earnings. At a Price/Sales ratio of 5:1, you would be looking at a market cap of 500 million or a stock price of about $36/share. Discounting at 30%/year yields a current share value of $16. If you discount at 50%/year, you get a share price of $9. My own guess is that anything under $12-$14 is undervalued given my best guess as to future earnings.

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