Why are Microsoft, Intel, Excite, and the other large investors willing to pay such high prices for these companies?
The health-care industry is huge, and combined with the power of the Internet, a new paradigm is emerging, and is reminiscent of the emergence of AOL, Yahoo, Amazon, Lycos, a scant three years ago.
Soon, an internet health care colossus will emerge, and it may well be this company, with no revs to speak of, but with a vision which will create an internet billion dollar company.
Our concept of a realistic share price is relative. The question to ask is: What will this company be worth in a few years? Does it have a vision which will create a new paradigm, and which will create a leader in its field?
Obviously, Microsoft, Intel, and Excite (ATHM) think so, and have put their actual cash on the line.
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