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To: Mad Bomber who wrote (20487)9/21/2000 2:17:49 PM
From: Mark[ox5]  Respond to of 21342
 
Hey I agree a company working in ASP will have a higher mutiple than a audio/video conference comapny.. but that is what CPI looks like to me now, not an ASP company. When they execute a plan and show me siginificant revenue growth, than I will give them the multiple that the analyst has already bestowed upon them.

I can start a company tommorow and say "I plan to leverage into ASP"; should I be given that sort of mulitple?? Price to sales ratio of 25 or 30? Based on what? I havent executed on the ASP part of the business yet, and either has this division and that's my entire arguement.. you dont value a company based on "potential leverages and synergies and here we come to win the ASP race"