MindSpring Enterprises (MSPG) Another ISP. Message Board

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Technology Stocks : MindSpring Enterprises (MSPG) Another ISP.

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To: Curtis Brown who wrote (212)	3/27/1998 10:57:00 AM
From: Ember	Read Replies (1) of 1434

New report from Furman Selz dated 3/20/98 on MSPG. I quote," Our valuation methodology remains unchanged with a 30x multiple on 2003 earnings and a discount rate of 18%. Our new 2003 earnings estimate of 5.80 per share (versus $4.53 previously), which stems from solid pricing, renders a 1998 target of $76." --2003!! MSPG has not acquired any new ISPs, and at their current valuation, what ISP is going to sell cheap? How many subscribers can they add through "organic" growth when acqusitions stop happening? They have not announced anything for a while. The company has stated that there is no plan for signficant contribution from advertising and providing web sites is a commodity business. What drives revenues to justify the valuation? Any thoughts?

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