Check out this valuation analysis of MKTW/TSCN...similar to MKTW/INDI.....the INDI analyst can cut-and-paste most of this when he issues his $15 price target for INDI...
biz.yahoo.com
According to a research report issued by Stonegate on January 15, 1999, ''this potential licensing agreement could entail
Telescan providing its services for CNBC.com, one of the most widely used financial Internet sites. We believe this represents
a significant event for Telescan, as NBC is one of the largest financial media companies in the world, and CNBC has 33 million
viewers worldwide. As Telescan continues to build a base of partners, we believe there exists hidden value for this recurring
stream of potential revenues.
''Additionally, Stonegate believes the IPO of MarketWatch.com, Inc. (Nasdaq: MKTW - news), which was priced Friday at
$17 per share and immediately opened trading above $85 per share, generates an interesting valuation comparison. At its
closing price of $97.50 per share, MarketWatch.com is valued at $1.15 billion, or 164X trailing 12-month revenues. Telescan
has a market value of $189 million, which represents a multiple of 13X trailing revenues. Additionally, MarketWatch.com lost
approximately $3.5 million during the most recent quarter while Telescan is near breakeven, and Stonegate is projecting over
$3 million in net income this year. Finally, Telescan has a longer operating history and its WallStreetCity site
(www.wallstreetcity.com) ranks favorably to MarketWatch.com in terms of advertising value, page impressions, and click
through rates. Stonegate believes these two very similar companies present a valuation discrepancy which investors have not
yet picked up on.''
According to Stonegate, ''the environment for Internet stocks has changed, and traditional P/E valuations no longer apply.
Perceived value is now based on page impressions, viewers, and partnerships. With regard to these factors, Telescan is
positioned extremely well. We believe the valuation discrepancy between Telescan and MarketWatch.com is unwarranted.
Assuming MarketWatch.com is overvalued and trades down to its IPO price of $17 per share, this equates to 28X trailing
revenues. An equivalent multiple for Telescan implies that the stock is significantly undervalued relative to its closest
competitor. Therefore, we are maintaining our ''Strong Buy'' on Telescan.''
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