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Technology Stocks : FirstWave Technologies (FSTW)

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To: McNabb Brothers who wrote (304)9/16/1998 10:49:00 PM
From: Russian Bear  Read Replies (2) of 9677
 
Hank,

The "four- to five-fold increase" comment was, of course, a cross between an early Christmas wish and a poorly timed, bittersweet joke.

On a serious note, four times today's price would be 11 - 11.5 / share, or a market cap of, roughly, $60 million. Assuming that Netgain becomes a moderately successful product, FSTW should, IMO, come to command a price/sales ratio of approximately 3. That would put us right in the above price range, at a minimum. Should Netgain prove to be _very_ successful (another Christmas wish?) we would likely see a dramatic upside from there. (Seibel, until relatively recently, traded at a PSR of 20.) If Netgain flops, of course, we are unlikely ever again to see 5, let alone the double digits. My own estimate (and fervent hope!) is that the last scenario is the least likely of the three.

All IMO, of course,
RB

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