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Technology Stocks : Data Broadcasting Corp. (DBCC)

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To: Sam Citron who wrote (4060)1/15/1999 11:43:00 PM
From: Maher Sid-Ahmed  Read Replies (1) of 5102
 
Here are real numbers:
MKTW has sales of $1.5 million in the last 12 month. Income of -$1.59 million. In real value this company should be worth no more than $1/share. DBCC has sales of $89 million in the last 12 month. Income of -$5.9 million.
Since both have negative income, hence, we can only compare P/S. Based on relative P/S DBCC should have a price of 89/1.5=59 x P of MKTW.
DBCC other business components have much higher value than MKTW. I think MKTW is a far more speculative investment than DBCC. This is just my opinion and I feel these stocks will tumble very quickly if they cannot show sustainable revenue growth soon. Compare MKTW with PQT which is valued at $3.125. I think PQT has a better business model and higher revenues.
In the model suggested by:
Christopher Byron MSNBC CONTRIBUTOR Jan. 15 1999 OPINION msnbc.com ref/
you will have to adjust his price of $13 to include other business components of DBCC which should be worth 59*share price of MKTW. This gives a ridiculous high valuation for DBCC of over $5000 per share.

Tuesday will be an interesting day.

Maher
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