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Microcap & Penny Stocks : JNNE - Jones Naughton Profits Via Mass Market Retailers

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To: FARcom who wrote (3561)2/25/1999 1:36:00 PM
From: Bo Le  Read Replies (1) of 4624
 
FP, I read your previous post regarding JNNE valuation. I agree with your analysis and price targets. Here I like to look at future JNNE market cap from a different angle.

Wall Street value an internet service subscriber (paying $20 a month) at about $2000 - $4000 (You can figure out this by looking at market cap on AOL, Mindspring, PWCC, PRGY and so on).

Now suppose a Kiosks generate $20 a day (which is a lot lower based on many previous post), i.e., $600 a month. We further assume that there are 30 kiosks users each day (this is low assumption also --- just think how many people use a pay phone each day at a hotel). By the way 30 users only generate $20 implies per minute charge is very very low ( around 5 cents a minutes if assuming 10 - 15 minutes each user). So by either counting the eye balls (number of users) or cash flow, we can value each kiosks at 30 times internet service subscriber. That is, each kiosks should worth $60000 --- $120000. Since JNNE is going to own 10000 kiosks, that will be a market cap 600 million to 1.2 billion. In other words, $10 to $20 a share, because there are 60 million JNNE shares outstanding.

Just my two cents.

BL
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