Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: vpelt who wrote (12539)	3/12/1998 5:17:00 PM
From: Zebra 365	Respond to of 31646

Future valuations require assumptions. Skeptic, there is no shortage of financial talent on this thread. Every stock has several values. Every method of valuation has limitations. Book value has huge limits in the forward value of assets, this is why most companies trade at multiples of book. Looking at the net present value of future cash flows is a better way to economically value a company, but then you have to make assumptions about those future cash flows. You have taken one position, in saying that Y2K represents a one time (one year or two), opportunity, and therefore have valued all Y2K revenues as a lump sum distribution. There are those on this thread who disagree with your assumption. I am one of those. I'm not going to back and forth on this, because it really is a no-win argument, the answers are in the future and we will only find them there. All stock "market" valuations look at future cash flows but they also look at what will be done with those flows. In a good mature company, if further investment in the company is not the best use of that cash, then you pay it out in dividends. There the discounted future cash flows give a firm picture of what the value of the stock is. In a good growing company, those flows are reinvested into the growth of the company. Those of us valuing the TAVA Y2K revenues higher are doing so based on this scenario. We are not engaging in a "Ponzi" scheme just because we differ from you in our future assumptions in valuing future cash flows of the company and its stock. Life is not black and white, only Zebras are. Especially Grey's Zebra. (Look it up.) Zebra