>>>Great day for BIT...NOW FOR A TECH QUESTION...I'm not very keen on valuating stocks but can anyone offer an educated assessement of this company and suggest what this stock's price is worth or where it should be, based on the numbers alone? Just curious. Thanks.<<<
I look at things this way....conservative estimate of $.20 per share for 1999. With a P/E or 20 (which is way below what a normal firm trades for right now), the stock price is $4. Now, with most growth firms, P/Es are usually 40 to 60. At 40, the stock price is $8. At 60, the stock price is $12.
Now, factor in that it is internet based. You catching on.
I'm holding this one. No day trading like BII. Why, cause the conservative, low risk is $4. And in 2001, when their earnings are, lets say, $.50 a share, then conservatively they will trade @ $10. I'm waiting and holding this one.
One last thing. I disagree with those that say this company needs more shares. That's the biggest problem with BII - too many shares. Look at all the IPOS on NASDAQ - UBID, EBAY, etc. - their IPOs were for 10 million shares MAX. Then they trade 10M a day! Guess what, people end up paying huge amounts more just to get in! Low number of shares is an advantage, period! |
