Echelon Corporation (ELON) Message Board

STOCKTALK

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 : Echelon Corporation (ELON)

ELON 21.88

+10.1%

Oct 6 5:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: spiral3 who wrote (1972)	4/30/2000 8:44:00 PM
From: Zeev Hed	Read Replies (1) of 3076

Spiral, OOPS, I meant COGS at 42%, that makes gross margins still at around 58% (anyone knows if that contains any royalties?), and taking "normal" R&D plus SG&A at 18% brings us to pretax profits of 40% and after tax profits at 26% of sales (I hope you would agree that these figures are "best case", since right now both R&D and SG&A are a much greater percentage of sales and could not support even a $100 MM annual sales rate). So my point to Larry should be not 5 times fair value but somewhat less than 4 times. I believe the rest of my argument (that the market is not there to justify a valuation north of a billion bucks) still holds. Zeev

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next