Excite [XCIT], an exciting stock to own in 1999! Message Board

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Technology Stocks : Excite [XCIT], an exciting stock to own in 1999!

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To: Stu who wrote (1164)	4/13/1998 9:20:00 PM
From: Sanjay Varma	Read Replies (1) of 3183

Why does this stock scare you? Too far too fast? I followed Iomega during it's rapid rise, and equally rapid descent in 1996. I know that stocks can collapse, especially when there is a price gap as with last Friday. But I think that XCIT has some positive supports that should keep the price from collapsing. 1. Yahoo, Lycos, Infoseek: I think that Excite's price will rise and fall with it's sector, and so a rapid collapse is less likely. 2. Method of Valuation: Rather than valuing XCIT based on future earnings, which would be a fairly depressing exercise given it's miniscule revenues, the only intelligent valuation of Excite's stock that I've read has been to compare it's daily visitors and revenues to Yahoo's stats, and value it accordingly. Given this method of valuation, XCIT is still undervalued. (Of course, if Yahoo's price collapses then so will XCIT's...) Well, just to be fair, here's a reason why XCIT's price might collaps: XCIT is not expected to show a profit until the 3rd quarter this year. Speculative investors might react poorly to the upcoming quarterly statement. Sanjay Varma

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