To: Nadine Carroll who wrote (958 ) 12/9/1999 3:06:00 AM From: William Epstein Respond to of 2477
NADINE CARROLL; Nothing is priceless especially, on Wall St. where everything is assigned some monetary value and then bought and sold. However, I merely pointed out that your measuring tools for determining the price potential of a stock like this one are woefully inadequate for the job. I wish there was something I could point to that shows potential with some degree of accuracy but I have nothing. Sometimes, I use price/sales as a temporary guide if that divisor has been higher in the past. It is not much help but it gives me something to hang my hat on. For instance, the highest its ever been for BEAS is 39. That doesn't mean it can't go higher. Perhaps, some brilliant analyst will come up with a formula at a future date but right now I know of nothing that is helpful. Believe me, I wish I could find some way to measure it. I based my original comment upon 35 years of experience watching the stocks of companies like BEAS. I calculated that price growth would go up about 100% every year for at least, 5 years and split at least, once every year,like MSFT, AMGN, etc.. I based this on current sales growth and the potential of their future sales. Remember, software companies don't have much overhead once a certain point is reached unless, they keep adding on salaries and advertising costs, willy nilly. Profitability should climb with sales growth. That gave me a price potential for the foreseeable future of 700%. There are others like Amazon that are real mind blowers and no rules seem to apply. However, they prove that when the demand is there there doesn't seem to be any limit. That is the best that I can do. Photoman