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Technology Stocks : FreeMarkets Inc-(FMKT) -- Ignore unavailable to you. Want to Upgrade?

To: SgtPepper who wrote (339)	5/4/2000 6:25:00 PM
From: wooden_nickel_2000	Read Replies (1) \| Respond to of 414

So, you like facts. Try these. The current FMKT MKT CAP is $2,500,000,000. If we give FMKT a future P/E of 20 (which would be outstanding for a consulting company) they would have to have ANNUAL earnings of $2,500,000,000 / 20 = $125,000,000. Hows my math? Annual Earnings of $125,000,000 for a consulting company that has at least two years of big losses forecast and no break even yet in sight? And a company that needs to generate new business every month just to keep going. WOW! Labor intensive - no leverage, large forecast losses, continuing need to generate new business, and a need to stabilize annual earnings at $125,000,000 -- with continuing outstanding growth potential beyond that to justify the 20 P/E. How are those facts? Now lets hear your facts.