AltaVista Company (ALTA) Message Board

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Technology Stocks : AltaVista Company (ALTA)

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To: fut_trade who wrote (24)	2/12/2000 12:46:00 PM
From: Glenn Petersen	of 110

Like yourself, I have some concerns about ALTA's ability to put together an economic model that eventually generates positive cash flow. During the quarter ending October 31, 1999, they burned through about $46.0 MM. If that burn rate remains constant, the current pricing on the IPO will sustain them for about 18 months. On the other hand, they are generating some real revenues and are showing some healthy gross profit numbers. At the current pricing, the company is being valued at approximately $2.8 billion, which compares quite favorably to NZRO's valuation of $3.0 billion. Obviously, the economic models for NZRO and ALTA are different, but I would argue that ALTA's model is richer and deeper. Some interesting comparative numbers (all annualized): ALTA NZRO Quarter ending 10/31/99 Quarter ending 12/31/99 Annualized Revenues $210.4 MM $48.8 MM Annualized Gross profit 84.8 MM (11.6)MM Annualized Operating profit (1) (185.2)MM (100.0)MM (1) Not including amortization of stock compensation expense.

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