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Technology Stocks : Identix (IDNX) -- Ignore unavailable to you. Want to Upgrade?

To: Sheldon C. who wrote (6373)	1/26/1998 8:10:00 PM
From: Steve Felix	Read Replies (2) \| Respond to of 26039

Sheldon, Seems Value Line doesn't know if the earnings multiple should be 20X or 40X. Maybe it should be 60X. Of course maybe the earnings will only be .50 Or maybe $1.50. I don't have much faith in predicting numbers too close in the biometric marketplace. It is way too young. The company is going in the right direction and I don't have them on a time schedule. As one infidel to another how far in the future do you see NRiD turning a profit? What does the Value Line Report on NRiD say? IDX almost traded at a double digit PE multiple today, but hey, tomorrow is another day.

To: Sheldon C. who wrote (6373)	1/26/1998 9:33:00 PM
From: David	Respond to of 26039

Hey, Sheldon, nice to have you visit. PE is about the least useful indicator for companies in the earliest growth stages. I mean, NRID has an infinite multiple, so what would it sell for if it made $1 a share? Something less than infinity. Same phenomenom applies when a company is breaking into the black -- you see a 100x PE or thereabouts. IDX will not be at 104 times earnings if it makes $1 a share (or if it is, I'm selling). It will stabilize in relationship to its revenue growth rate. Bring this information back to Bob Brooke.