FYI, Bill, in 1998 Intel's pre-tax margin before non-operating losses was approximately 32%. Given VLNC's a)large accumulated losses, b)low tax rates in Northern Ireland, c) potentially proprietary technology that looks to be significantly better than anything in the market, my estimate of 30% after tax margins in not completely out of whack. But, just for the sake of argument, assume that I'm off by a factor of 2, i.e., 15% margins. That would still imply an $85 stock, even 7MM new shares. My only point was that the whole financing issue didn't seem particularly relevant to the longer term prospects for this company, assuming their technology is as good as a lot of people seem to think. What the hell, I'll settle for $85/share, won't you?
Eli |
