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Technology Stocks : TouchStone S/W (TSSW) -- Ignore unavailable to you. Want to Upgrade?

To: David Alan Cook who wrote (3210)	3/26/2000 9:48:00 PM
From: robbie_nw	Respond to of 3627

Dave - Are we on the same page? NAV = Net Asset Value? I'm not trying to refer to RAZO's optimistic calculations regarding what he thinks the stock should trade at...I'm referring to a fairly black and white value of the companies assets (ie: liquidation value) Any value assigned to a company above its NAV has to come from market leadership, consistent revenues/earnings (not one time events), high barriers of entry for competitors, strong brands,et. etc........NONE of which TCG has. Without any of these critical components...why should TCG trade at a multiple of NAV? Anybody with access to some cash is welcome to be in the incubator biz...and a large # of individuals and companies are. Ironically, you'll find many companies with a failing core business trying to find redemption in the incubator biz. Regarding RAZO's estimate of TCG's software business being worth $2 per share.....somebody must feel a smidge different...cuz TCG just sold it for 57 cents per share (6.5 million) The only value the software business has to TCG and its shareholders is cash received from its sale. TCG did not sell the core business for 9 million...they sold it for 6.5 million...the balance of 2.5 million was an investment made IN EXCHANGE for preferred shares in TCG (ie: dilution to current shareholders). What # do you come up with for NAV? (no multiples, no projections, no anticipated but unknown investments)