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Technology Stocks : Firstwave Technologies, Inc. (FSTW) -- Ignore unavailable to you. Want to Upgrade?

To: Shege Dambanza who wrote (388)	2/7/1998 7:19:00 PM
From: Brett Nelson	Read Replies (1) \| Respond to of 1205

Shege - Part of the value of these threads is the free exchange of information. The value derived for some is learning how those with more experience analyze companies and industries. While I can't speak for Steve, I'm sure his inquiry is not a testament to his laziness or lack of research but rather an attempt to learn what others think and how they reached those conclusions. If you're not interested in sharing your thoughts, that's fine (just don't be a jerk to those who ask for your assistance). Now, I have done my homework and on that basis I agree with Roger about the importance of revenue growth for BROC. I've spent the last four years with a London-based management consulting firm doing M&A advisory. For emerging software companies, it is not at all uncommon to value them on a revenue multiple. The logic is that these firms are burning cash on R&D and marketing in the product ramp-up phase so earnings are likely to be meaningless until the software has established a solid customer base. Granted, BROC is by no means a start-up in the traditional sense of the word. However, given the firm's emergence from a restructuring, I would argue it's more akin to a start-up than not. As such, revenue growth will drive the market valuation of BROC. The real outstanding question is whether BROC will deliver these revenues. Brett