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Pastimes : ASK Vendit Off Topic Questions

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To: sandintoes who wrote (18762)2/2/2001 11:03:47 PM
From: Walkingshadow  Read Replies (1) of 19374
 
BTW, with regards to LNUX, this chart gives a little different perspective:

askresearch.com

The stock is currently trading AT book value (Donna is smiling, you can be sure <ggg>), and two times sales.

In other words, it has been hammered, and the stock price essentially reflects the market's expectation that the company will never make a profit, and so is only worth what the stuff it owns is worth.

Interestingly, the last several months volume has gradually increased, and the stock still draws enough attention fro the Street to generate a daily volume of 1.5 million or more.

I'm not saying it will never make a profit. But if earnings increase, you can bet the company will very likely be re-valued by the market. At this point, it is undervalued by anybody's yardstick.

It is hard for me to imagine how LNUX could go much lower. But that alone doesn't necessarily make it a buy. As Doug suggests, this is the sort of situation where delving into the fundamentals/story/products/management/business model etc. in some detail may be helpful.

WS
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