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Technology Stocks : Viisage Technology (VISG)

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To: opalapril who wrote (221)10/17/2001 2:49:32 PM
From: Jim@Inland  Read Replies (1) of 536
 
<<<care to give a reasoned rather than a poetic argument for what the fair value of VISG is? >>>>

certainly:

Of course it's all historical and no doubt there will be some benefit to the company from recent realization that security is lacking in many places.

My points is that this company is a subsidiary of the Lau Corporation. I don't think it's by accident that the technology VISG employs is licensed and not owned. The Lau Corporation will have their own way with this in the future. Yes I know they have a license agreement for parts of the technology. It would be interesting to get a good look at the license agreement.

I'm just not prepared to roll over and consider this a buy when they, predominately, have lost money. They are an information provider. That's it! nothing more.

They earned 5 cents per share last year . So if they quadruple it, they'll make 20cents. Now that could be worth 20 times sales, although I doubt that this sector will command that high a pe when this hype dies down. So if it's worth 20 times earnings, that's going to make it worth 4.00.

I'm the eternal sceptic I guess, but those are my reasons. Not very poetic.

Very best regards and happy investing to all:)

Jim
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