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Technology Stocks : CYOE / Diana Corp. Why has the SEC not halted this pig?
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To: Richard Miller who wrote (54)3/2/1999 10:28:00 PM
From: Q.  Read Replies (2) of 242
 
valuing the stock based on the balance sheet,

the book value is $1.33, but that is not what the company is worth.

Many of the assets on the balance sheet are of low quality.

In fact, more than half the book value is attributable to 'intangibles'. If you exclude them to compute the net tangible assets per share, you get $0.61. That's roughly what I'd guess the stock is worth. And it's consistent with my estimate that the stock is overvalued X10.

Even using the net tangible assets per share might be too high a valuation. What are the receivables worth, for customers like Crescent and Wireless USA? Not much. The co. has a fondness for customers with a questionable ability to pay. The last time they were audited, it was revealed in the 10k that the co. faced a liquidity crisis because of delinquent receivables.
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