NObody in their right mind would argue that mstr is worth 2-3BB today. The IPO price of $12 reflected strong future revenue growth and profitability. This firm built its initial products using customer money, but has long since become license revenue driven. Their revenue stream is, for 95, 96, 97, of 9.7MM, 22.6MM, 53.6MM.
For the first six months of 1998, as a public company, is see quarterly revenue of 19.9 and 23.8. maybe the curve is flattening, but it sure looks like they will do $100MM or so in 1998 -- and non-license revenue (they call them support fees) were less than 1/3 of the total in q2. I agree they are very expensive, and shares might be bought much cheaper at some point, but they may one day be worth $40.... |
