Al, re valuation methods: NXTL is not valued as a specialized industry, as you suggest. No, it's valued as a startup which has tremendous future sales and profit potential in a rapidly growing industry. In fact, it's "best of show" in its industry. There's no mystery to valuing the company. You're right that NXTL has lots of blue sky (intangible assets - in this case in the form of licenses), but a company's value is based on its future. Thee are few other public companies selling at NXTL's market cap with its potential. How few? No others that I've found so NXTL is in a pretty select situation. The debt scares many folks, including me, when they first look at the slick glossies. But a close reading reveals the real likelihood that the current megadebt will/can be paid off before 2005 if current assumptions are correct. In fact, the debt won't be completely liquidated because NXTL will be investing in additional areas down the road that will increase market cap even beyond our current hopes. In other words, they'll be growing the business.
Arnie |
