Dennis, the $760M figure I calculated in my post# 107 was KNIC's share of the $2B total market capitalization of Pure Energy corp, based on DLJ's 1-2B revenue projections. THATS NOT SALES--I MADE MYSELF AS CLEAR AS POSSIBLE. Therefore if you take 760M/15.1 = $50per KNIC share. In other words, Pure Energy, as an asset on KNIC's balance sheet will be worth $760M, therefore KNIC's overall valuation should be at least 50/share + core business value of perhaps 20-25/share + insta-heat's IPO value of ???(maybe 10-15/share) = 80-90/share for KNIC.
Now, this total value may not be reached until perhaps 1998, therefore, it pays to think long-term here.
Again, I like to caution that my above # are based on assumptions that the stock market may think too optimistic or too conservative, only time will tell. In the mean time, I stick to my previous statement that now is the time for massive accumulation of knic shares, its not the time to fiddle around with "ENTRY POINTS" of 1/8 or 1/4 or 1/2 higher or lower--its not time to use TA, its not time to fiddle around with "resistence points" ie. $8/share, its not time to do short term trading----- its time for massive accumulation!!!!
This is a company that will probably do over $1/share in EPS in 1997 therefore based on "CORE" business valuation, it should be at $25/share. Then PURE ENERGY is icing on the cake.
I will continue to accumulate massive amounts til $15/share, then sit back and enjoy myself, because the rise will be fun.
Welcome to KNIC everyone, NASDAQ's top % gainer for 1997. I predicted this in my first post on this thread. I will make another bold prediction now: Knic and Pure Energy stock will make more millionaires than Iomega, Netscape, Zitel and AOL combined--in a shorter period of time!!
I suggest you all Bookmark this post for easy reference at year's end.
Ciao
TOM |
