The Roaring Twenty 1998 Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : The Roaring Twenty 1998

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: SpecialK who wrote (145)	7/31/1998 12:39:00 AM
From: White Shoes	Read Replies (1) of 338

Hi Ketan, I admit the MRVC decision was off the cuff but some feel that the rapid earnings growth is behind them. If I had more time I would dig into the prospects for their new products but I feel less comfortable in this one than I would somewhere else. I think a NSCP purchase here is risky. Basically I think a 'fair value' for NSCP would probably be $20. But what would takeover value be? $60, 80? I know, thinking like that is the sign of rampant bullishness but as we know lesser companies than Netscape have been taken over for insane amounts. Therefore my reasoning is that it has a fair shot of climbing back to $40 (halfway between a reasonable valuation and what a hypothetical takeover price would be) in short order. Of course if the technicals break down in the stock and in the broader markets (likely), then NSCP could see $20, so you only want it if you would be comfortable holding through a decline (i.e. if you like the company). The best course of action is to take a nibble (1/3 of your full position) and add more later if the situation warrants.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next