> Well honestly I think you are right
> 14 is the correct price for this stock
> but I this price is two months away
The problem is that this is an Internet stock. The normal rules of value don't seem to apply. People have said the same things about AOL, Amazon, Yahoo and all the others. They are so overvalued that they can never bring sales and earnings up to justify the stock prices. The "correct price" may be $14, but will it ever get there or even continue to move in that direction?
One thing about Ticketmaster is that it has huge name recognition and also advertising clout. Also, the product seems to have a good fit with Internet commerce. I expect they will continue to evolve the product to allow more and more features, maybe even better seat selection and so on, to draw customers to their web services. Also, the kinds of people who use Ticketmaster are also the kinds of people most likely to be connected to the web and at home online. It will depend on how well the web service is managed and how well and imaginatively they grow and evolve it, and also expand rationally into new areas and markets, whether the company succeeds, but if it shows signs of it, then long before the revenues and earnings start to make "rational" sense, I can see the stock price moving up against all economic logic.
On the other hand, you may be right, or the bottom may be somewhere in between. Blaaah. |
