Skeptic,
If I may I would like to address your very salient points.
To: +Jack Zahran (6590 )
From: +Skeptic Wednesday, Nov 26 1997 5:02PM EST
Reply # of 6599
Four reasons not to buy TPRO:
1. No earnings and dilution required for future growth.
1a. You are correct, bu it is a $6 stock
2. Y2K boost, no matter how strong, is temporary.
2a. I strongly disagree. What IF they do the business that is possbile, build huge cash flow, use stock to buy more businesses that will be accretive, and the Y2K business goes for 3-4 yrs instead of 2?
3. Y2K as Trojan horse is plausible, but far from guaranteed.
3a. No issue, that is what we are all guessing about.
4. Y2K fallout could very well decimate the entire market, Y2K stocks included.
4a. Y2K can and probably will hit certain parts of market in a big way, but is it not possible that the TPRO's will benefit as a hedge, a concept play, or whatever?
That said, strong revenue growth, real earnings, and/or a rapid increase in Y2K awareness should definitely help this stock over the next 6-12 months.
This is a must, but once again we evaluate this stock with more stuff than GE,IBM,etc....If this were $20 a share today, I would be in your camp, and short this stock, but right now we are hoping and dreaming of tomorrow. I agree some of the price forecasts are wild, but I believe it could happen. That is what the market is all about , your dreams vs my dreams. The expectation is always greater than the realization. We just haven't had the expectation yet.
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