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Technology Stocks : Mbrane (NASDAQ: MBRN) - An enterprise solution? -- Ignore unavailable to you. Want to Upgrade?

To: Veiko Herne who wrote (680)	12/30/1999 12:52:00 PM
From: Shivram Hala	Read Replies (2) \| Respond to of 1238

** As I have understood, the typical business model for US company is following: 1. Founders will buy the stock with 1 cent/share 2. VC will buy stock for $1 / share 3. IPO will be made at $10-$20 level 4. If Wall Street likes the stock, it goes to $200. Am I missing something? * Yes, A couple of million dollars. :) All these is happening because of the new economy or rather because of how things are being done now. The internet. The key is in selecting the companies who will lead and will survive and wiil win in the long run. I was always value oriented, and wouldn't buy some stocks because 1) they were too high priced, 2) fundmentals were insane with PEs of 100, 1000, ... (Personally I prefer a PE of 18-35.) With these high flying stocks, that is out but what I'm looking at is earnings potential, .. revenue growth, market leaders. If revenue growths slow I dump the stock. CMRC, ARBA, VERT, BVSN are in the b2B segment which I think will be very very big. GM has indicated that they will save $500m and in fact CMRC gave 20% of itself to GM for the deal to beat ORCL. SAP seems to be in a position to snare Daimler-Chrysler with ITWO being a strong challenger. ORCL has Ford. These B2B companies will be uniting buyers and sellers dealing in toiletpaper to nuclear reactors (just kidding)... The companies save a lot of money by avoiding all the paperwork, procurement, ....., while integrating the automated process into their SCM. B2B doesn't depend on christmas or thanskgiving for record sales (B2C stocks I think are cyclicals now). Their ability to grow depends on how much value they can create for their clients. ITWO has a head start in that thinking. The $ 200/s companies will have to be bought because of the growth potential they offer and thats how much they cost. Have you ever seen a $30 stock with a potential of 40-50% growth year over year for the next 5 years. BTW the new business model seems to be ... the more money you lose the higher the stock price, the caveat being if you have lower revenues than what the analysts predict who keep upping the target price.