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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator

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To: Bill Harmond who wrote (361)7/23/1996 6:24:00 AM
From: Bill Fischofer   of 24154
 
Not a good analogy.

At its peak, AMER was awarded a market cap of 6.1 billion (now 2.5 billion). NSCP, in just a few months, hit 7.4 billion (now 3.9 billion). So even at today's "corrected" prices, NSCP is currently valued at 56% more than AMER. Does this make any sense? My point is that the market is shooting companies with "potential" left and right these days, knocking 50%, 60%, or more off their inflated share prices. By these measures, there still seems to be significant short-term downside for NSCP here. Longer term, earnings will tell. Presumably a mature NSCP would trade at PEs closer to the 35-40 range that MSFT enjoys today. Apply double that PE to today's NSCP and you're still looking at an under $10 stock.
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