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Technology Stocks : Transmeta (TMTA)-The Monster That Could Slay Intel -- Ignore unavailable to you. Want to Upgrade?

To: William F. Wager, Jr. who wrote (219)	11/4/2000 6:39:57 PM
From: Bill Fischofer	Read Replies (1) \| Respond to of 421

Re: IPO pricing and aftermath I tend to agree. At a price of 13 post-IPO TMTA would have a market cap of $1.6 billion. At $18 (assuming the price isn't further bumped) that puts the market cap at $2.25 billion. This is pretty rich for an unproven concept with essentially nil revenues behind it. By contrast AMD, which has trailing sales of over $4.4 billion, is awarded a market cap of only $7.4 billion. Such are the hazards of competing with INTC. Clearly TMTA is being viewed as a blockbuster which institutions hope will reignite the IPO market following the dotcom bust but these hopes will only add risk to those tempted to chase TMTA in the aftermarket. While I'm still trying to get some IPO shares I'll wait until after lockup expiration to look for entry points if I don't get any. I still think TMTA has huge potential. I'm just not convinced that superpremium valuations are warranted yet.