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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?


To: Knighty Tin who wrote (83859)9/29/2000 8:05:39 PM
From: valueminded  Read Replies (1) | Respond to of 132070
 
Mike:

I am evaluating Sangstat for purchase. I know you have liked it at times. They have gotten the suit behind them and been heading straight down since. My curiosity is do you still like them and if so, how do you establish the value of a company which has yet to make a profit. Yes sales are growing well, and losses are coming down, but no profits yet.
Given these issues, how do you establish a price target for the stock. My thinking is to estimate the size of the target market, look at rough gross margins and estimate a growth rate. Leaves a lot up for debate but I am unsure how else to evaluate. Would appreciate your thoughts and also some information (if you care to provide) on how you established the value for the company.

thanks