Cents and Sensibility - Kimberly and Friends' Consortium Message Board

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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium

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To: Richard Sinden who wrote (38446)	12/4/1999 2:03:00 PM
From: xbrent	Read Replies (1) of 108040

NTPL valuation. ACOM is presently priced in the low 20's. My guess is that it should see $50 or close to it at some point next week, $40 seems highly likely given comparisons with recent IPO's. Although such calculations are accurate in a sense, its tough to apply a higher ratio. Suggesting that NTPL be valued greater than ACOM is tough to do although the numbers might so indicate on the face of it. The total NTPL business may not be a 1 to 1 with the ACOM gross, business segment for business segment. If one assigned the appropriate portions of the the respective businesses than probably the ratio would be less than 1 to 1. Either way it would seem that NTPL will justify a higher multiple than the present. Many issues just don't have valuation comps which reflect where other stocks trade. We will know the answer by the end of next week. Similar companies, APNT and PXCM are worth looking at also. APNT has a gross income vis a vis share value of 14 to 1 while PXCM has a valuation of 26 to 1. NTPL is about 1 to 1. Again factor in differences in what constitutes gross that a higher ratio is indicated than the present 6 1/2 per share. In terms of selling at 6 3/4 or 5 3/4, etc. I would suggest that almost all traders/shareholders will want to see just where ACOM opens for trading and what the market does at that point with NTPL valuation. A minor sell off occurred for about five minutes on friday and the stock did not sustain any drop at all. In other words, people have more of a wait and see what happens on monday and tuesday rather than sell at a certain number no matter what the number is. If NTPL is $7, $10, or whatever at 3:30 on monday why sell before the close? Might as well wait and see what happens on tuesday. Some think that ACOM might trade closer to $100, who knows. It is my hunch that that will be the prevalent thinking. I am not saying that ACOM will trade at $100 but nobody guessed where some of the recent IPO's opened. Furthermore,some might want to wait until Wed morning also to see if they think that a hold or a sell is warranted as some recent IPO's have done multiple day runs. I apologize for my bullish thought process but I would suggest that it is fairly consistent with recent market action.

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