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Strategies & Market Trends : Jim's Nasdaq100 Special as a basket. -- Ignore unavailable to you. Want to Upgrade?

To: Casaubon who wrote (1969)	2/24/2001 11:05:06 AM
From: Louis V. Lambrecht	Respond to of 2103

Casaubon - I agree with you. I understand that your company is not in the Nasdaq 100 yet, so we agree again. You may use forward looking P/E's in a nascent technology (new cutting-edge company....I have biotechs and fuel-cells in that segment) but that argument does not applies to the old new-economy of the Naz100. But remember that the EBITDA concept (what I call profits excluding any charges) lead to the bubble. If your company accounts for research, development, patents, all sorts of rights and intagibles, she can use those figures in the balance and only amortize a part of it. Eventually show a profit. IMHO, as long as the capital covers expenses (burn-rate), plus needed new investments, and that the plan shows a break-even at some point, that company is well managed. She can be "fairly" priced on the market and attract investors (on the equities market or new rounds of fundings). Pure clean accounting methods reflecting a well established business plan. You can set a value on such a company before speaking of any forward looking P/E (or should I call this "hope"? <g>.