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Technology Stocks : Creative Computers(MALL)
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To: Platter who wrote (252)11/18/1998 6:52:00 PM
From: Mad2  Read Replies (1) of 1634
 
I got in and out today and did pretty good, however I wouldn't short this one for all the tea in China. Revenues are over $600mil as a catalogue and retailer of computers, while profits aren't that good, this business can be improved. If we value this business at $.25 on a dollar of sales its worth$180. The UBID portion is worth a bit over $100 at the offering price, which in today's climate could be valued at 3-5X that. At the close of today's market MALL has a market cap of $300mil, with no debt. The concern about MALL's current price shouldn't be the valuation of MALL, but rather the valuation of internet/aution companies. UBID is no schlock business as its a leading contender in it's segment. With EBAY out there with a 5.5Bil market cap one could build a sound argument that UBID should be valued at 1/5 the market cap of EBAY, giving you a 1.1bil market cap for UBID and potentially a 1.28 bil market cap for MALL. Will it get that high? I doubt it. Could it get that high? Ummmmmmmm, maybe. This internut stuff is weird. I do know I wouldn't short it. I'd short EBAY before I'd short this one. I also wouldn't buy any of this stuff with the hold till I retire mentality as the barriers to entry are low and the climate changes too quick, but to short these things you need a lot of margin and guts. Easier ways to make money in my book
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