>>At that time, "browing the Internet" will be about as remarkable a skill as being able to operate a telephone.
It already is, dude. A third of the country is already on-line, most of them for over a year now; a third will probably never be on (e.g., 10% or so don't have TV's or phones yet). If you're lucky, someday 2/3 will be on-line, many many years from now.
So go ahead and double ONSL's revenues (and assume competition won't eat into revenues/profits). The company STILL isn't profitable at those levels. Look at the gross margins ONSL is generating on its sales (i.e., it's like 10% and falling.) The company will never be profitable with its existing business plan, let alone profitable enough to justify this absurd valuation. This management has never executed a succesful business plan, and likely never will.
You can argue that market mania/ disillusionment/ hype will push this stock higher. But forget the valuation arguments. It makes you look like a newbie analyst, at best. |
