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Technology Stocks : Advanced Engine Technologies (AENG) -- Ignore unavailable to you. Want to Upgrade?

To: RAY BARBER who wrote (580)	6/8/1998 2:31:00 PM
From: Sid Stuart	Read Replies (1) \| Respond to of 3383

Folks, I have been reading this thread for about four weeks now. I started when AENG was around 7, watched it go into the 20's and back down to the teens. I'm a long term investor of the Motley Fool school and so I generally don't buy a stock until I've watched it for 3-4 months and figured out whether I believe in the management and the product. That means I don't own any of this stock, nor have I shorted it. (Though frankly, if it hits 29 again, I will be tempted to short it. My apologies to Greg and Travis in advance. ;-) I have one request and one suggestion for a topic of discusssion. The request is that people stop the profanity. I'm really offended by the buttfinger name calling for some reason. (I used to be a sailor, so my indignation surprises me. I've heard worse.) The suggestion is that we as a group try to decide what a reasonable valuation for this stock is. To do that we need to get an idea of how many liquid fuel engines are sold per year and a breakdown of numbers by engine type. We need the type breakdown because while one could probably charge a $500 royalty for a car engine, it would not make sense to do so for a lawn mower engine. The next thing we need is an estimated wholesale price for the different types of engines. Then we need to estimate a royalty price that the market could sustain for each type of engine. Unfortunately, I don't have any idea of what these numbers are. Can someone provide the data? (If not, I will try to research the numbers.) We can take a percentage of each of the engine markets to come up with an estimate of gross revenue and then try to estimate the profit margin. My guess would be around 90% as the company would not have much overhead in the collection of royalties. With the earnings estimate and a guess at the future growth of the market, we should be able to come up with a reasonable price range for the stock. Sid Stuart