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Technology Stocks : LARSCOM......A Less Risky IPO (LARS) -- Ignore unavailable to you. Want to Upgrade?

To: TOM KARIS who wrote (778)	4/1/1998 1:19:00 PM
From: Steve Robinett	Read Replies (1) \| Respond to of 990

Tom, You wanted suggestions why LARS has trouble getting past its IPO price of $12. You answered your own question: "LARS never really had the fast growth that these guys had." As I may have mentioned before on this thread, a ballpark discounted cash flow pricing on LARS gives a share valuation of about $9/share. That assumes about a 20% growth rate. If LARS growth rather moves up to the anticipated industry average of 30% over the next few years and LARS management continues the excellent job they are doing (IMO), the cashflow valuation would move up to about $16/share, a double from current levels. As for you hopes that LARS will be bought out, check LARS SEC filings. You'll find there are two classes of shares, those you and I own, that get one vote per share and a class of shares that are identical except that they get four votes/share--all owned by insiders. LARS only gets taken over if insiders want to sell. Best, -Steve