Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : GTR GROUP INC. (formerly Games Trader) TSE:GTR, AMEX:GIG -- Ignore unavailable to you. Want to Upgrade?

To: Ruby who wrote (244)	4/17/2000 3:45:00 PM
From: John Paquet	Respond to of 290

Talking about truth in the stock market is unlealistic, there is no truth in the market place. What happens in the market place is big fish eats small fish as BIOLOGY 101 definition of food chain theory. This FOOD CHAIN THEORY is indeed totally true. KCA did very well I listened to you in this web.com world, I got in when KCA breakout $1.25 and I got out too early at $10.50 areas, it went up to %17-18 areas, I shorted at $14.50 and recoverd the shorts around $4.50 on average. KCA outperformed this GTR by huge capacity. JP

To: Ruby who wrote (244)	4/26/2000 4:58:00 PM
From: Professor Dotcomm	Respond to of 290

I find it hard to believe that the CEO quoted you earnings for the last quarter in the high twenties. He was probably referring to the year since analysts are quoting around or a bit below these numbers. But this is not the main point. When a company issues sackfuls of shares for acquisitions, the eps are misleading until the resultant growth becomes visible.(True, if you issue debt, it becomes visible pretty soon afterwards). No, in my opinion, the key to understanding GTR is tracking the trailing net profits of four quarters. Then you have a gradient and the slope of this gradient will eventually determine the right kind of p/e. Obviously, a faster growing company should emerge with a higher p/e. In GTR's case, in my own opinion, a p/e based on even weighted average shares outstanding will probably come in at around 20 -25 times fully taxed fully diluted earnings. I believe even a 75 times multiple based on last year with only 6 months of Mad Catz and zip from ZapYou.com, would not be over pricing the stock. The trouble is, will it be able to sustain its FY99 growth gradient? The key, I think, will be next Christmas's run rate on their e-business. For this they will need a further half dozen or so US web sites under management.