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 : K-Tel (KTEL) Have the cheesy '70s records come to an end? -- Ignore unavailable to you. Want to Upgrade?

To: peter michaelson who wrote (1299)	5/1/1998 6:43:00 PM
From: peter michaelson	Read Replies (1) \| Respond to of 3203

Now that trading is over for the week, would anyone please take a reasoned (not just a 2 liner, please) stab at my questions, linked below. Much appreciated. Message 4283630 Peter

To: peter michaelson who wrote (1299)	5/2/1998 10:26:00 AM
From: Thomas G. Busillo	Respond to of 3203

Peter, I'll take a shot at it. The rationalization for valuing CDNW and NTKI @ 30x sales? Other than stating the obvious, that the market has priced in tremendously optimistic expectations for this line of e-commerce, I'm baffled. I see the reasons for optimism, I just don't know if they're worth paying that type of PSR at this point. And let's face it, the only reason we're talking about PSR, is that's a ratio that right now doesn't come up "NA". As far as valuing KTEL at a comparable PSR (and for the sake of argument, let's just assume that's a valid metric), I'd flip it around and ask "is there a reason why CDNW or NTKI are trading at a higher PSRs?" I'll throw out my top 3: 1. reflects a liquidity premium 2. reflects greater confidence in management 3. reflects an appreciation of investments already made to build brand equity & site traffic I'll save you my thoughts on K-Tel's "brand equity", but you probably know where I'm headed on that one <g> Good trading, Tom