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Non-Tech : NetBank(NTBK)-formerly Atlanta Internet Bank -- Ignore unavailable to you. Want to Upgrade?

To: Tom Hua who wrote (17)	2/1/1998 11:10:00 PM
From: Jimbo Cobb	Respond to of 2414

Well, I don't have all the numbers in front of me, but I believe 2 of the company's underwriters put out reports with fairly aggressive growth projections a few months ago...and with reasonable valuations, one company had a 12-month price target of $15 and the other had $16, so unless their growth has cranked up beyond all expectations, or they are suddenly deserving of higher valuations due to e-commerce craze, I would put some credibility in these projections. Of course, the last thing I heard was that NTBK could earn $1/share in FY 1999...and 25 cents of this is probably just on interest from their $30 million plus in cash....So, maybe give them about $6 cash by then and give them a 20 P/E for the other 75 cents earnings (20 x .75), and you'd have another $15...total of $21...but that's based on a lot of "if's" actually coming to pass and nearly 2 years down the road. Considering their are a lot of risks between now and then, a current price of $15 would seem pretty fair, although certainly worth a purchase at these levels if you believe the "story" will play out if projected.