SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : IMRS A Y2K FIRM SUCCESSFULLY REPOSITIONING ITSELF
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: paul e thomas who wrote ()2/15/2000 11:13:00 PM
From: Byron Angel  Read Replies (1) of 188
 
Value of IMRS

CMGI has just purchased 80% of Tallan for $715 million. Formerly called Business Data Services, Tallan designs Internet and computer applications for companies, especially those involved in buying and selling over the Internet. WHAT DOES THE PRICE PAID BY CMGI FOR TALLAN TELL US ABOUT THE VALUE OF IMRS?

Since 80% of Tallan was bought for $715 million, 100 percent is worth $894 million. Tallan had 1999 sales of $54 million. Assuming 50% growth in sales, revenues this year would be $81 million. Based on this assumption, CMGI paid 11 times this year's sales for Tallan.

IMR is going to have sales this year of roughly $100 million in E-business services. Eleven times this is $1.1 billion, divided by 38 million shares, gives a per share value of $29. Assuming all the rest of IMR's business lines are collectively worth slightly more than its E-business services means that the company has a total value of $60 per share.

It seems to me that IMRS is very undervalued at its current price, which I think is due to the problems the company had last year with Y2K. As sales increase, especially sales of E-business services, and earnings pick up, I think we will see the share price move towards the valuation that is being placed on other IT consulting companies.
Byron
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News