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Technology Stocks : Nanophase Technologies (NANX) -- Ignore unavailable to you. Want to Upgrade?

To: DLS who wrote (47)	1/6/1998 4:38:00 PM
From: LPasko	Read Replies (2) \| Respond to of 322

You can't use fundamental analysis ratios, such as price/sales, EPS, book value or any other such measure to evaluate a new company pushing an emerging product or technology. I know the human mind seeks to impose order upon chaos, but there simply is no rational way to value a "story stock." The best even the swiftest and most gifted analyst could do is: establish the size of the potential market, evaluate the competition, make a guess as to the new company's eventual market share at a theoretical future date (along with its costs and margins), assess the expense of reaching this point, form an opinion as to the abilities of the management team and, finally, pray. Also, let's not treat analysts predictions as gospel, or even as very meaningful. Remember Oxford was a screaming buy at $70 a share not that long ago. By the way, I like NANX, but I formed this opinion after reading the Prospectus. I suggest all investors do the same. Happy investing.