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Technology Stocks : CheckFree (CKFR) -- Ignore unavailable to you. Want to Upgrade?

To: Robert Gintel who wrote (3115)	4/2/1998 8:49:00 AM
From: Kalpesh	Respond to of 8545

Investment misconception !! I completely agree with you Mr. Gintel. DCF valuation is a very conservative way of valuing a company. Typically this tool is applied to a mature business like Coke, EXXON etc., (e.g.,value companies, refer legendary investors like Ben Greham and Warren Buffet). But it would be erroneous to apply DCF to growth companies like AOL, YAHOO or Checkfree. Checkfree is still in the innovative business valuation phase like one used by internet analyst such as Michael Parekh at Goldman Sachs. If at all you want to apply multiples to the business, you can look at forward looking P/E or price/revenue multiples based on revenue/earning estimates of 1999/2000 and likes. Also, CheckFree reiterated its comfort with analyst projections that it will achieve break-even operating results in the current quarter ending March 31 and profitability in the quarter ending June 30, 1998. Hence, once in black, i.e. breaking even in current quarter and turning profits subsequently, Checkfree will follow the same price trajectory as AOL and YAHOO, in my opinion. -kalpesh