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Technology Stocks : Audio and Radio on the Internet- NAVR -- Ignore unavailable to you. Want to Upgrade?

To: Baghul who wrote (237)	7/21/1998 3:41:00 AM
From: Anthony Ostroski	Read Replies (2) \| Respond to of 27722

was listening to 80's music from site while trying to order ~$50 worth of cds on my 28.8 modem and basically it was so extremely slow for items to come up that I gave up. They had better prices than cdnw, music blvd., amazon (was not able to check shipping charges). Anyone else experience this while listening?

To: Baghul who wrote (237)	7/21/1998 5:41:00 AM
From: iceburg	Read Replies (2) \| Respond to of 27722

I don't see how anyone thinks it is only a trading stock right now. The stock is up over 200% on the year and climbing hard. YHOO was up 450% last year and everyone (including me) thought it would be killed this year. It is up another 200% making the total rise over 1000%. worst case scenario: Let's assume for sake of argument that the cautious ones are correct and their are really 25M shares out there and not 7M. Let's also assume BCST is only worth $20/share, not $60. Even in this scenario NAVR would have a MC of 200M, BCST would have a MC of 350M. NAVR is still dirt cheap and way undervalued here (NAVR has revs of 200M versus 7M for BCST). Furthermore, if the preferred shareholders did exersize their warrants yes it would add dilution, but also cash to Navarre's coffers (in order to purchase the warrants the preferred shareholders must give NAVR more $$,$$$,$$$) And with the price to book Internet stocks are commanding now, getting money at a 60% discount to MC looks pretty good. best case scenario: Based on revenues of 200M and climbing fast, and acknowloging that the preferred holders will eventually excersize their warrants and there will eventually be 25M shares outstanding, the price to sales is currently 1. YHOO's current price to sales is 70. NAVR with its potential current market cap (current share price times potential number of outstanding shares), fully including preferred share dilution is 200M (25M x $8/share). This same price to sales ratio as YHOO for example would place NAVR at $560/share fully diluted - $1600/share if you ignore the preferred shares. I am not suggesting NAVR is worth nearly that, I am merely demonstrating the insanity of the market. I do think one could make a case for a price-to-sales ratio of 4 for NAVR, yielding a $32 stock price, especially given the sharply increasing revenues NAVR is experiencing. A little market insanity, a realization their products are darn good, another deal in the works, Internet speeding up, who knows how high it could go? I shorted AOL at $25 ($50 pre split), and YHOO at $67. Made money on both believe it or not. But I have learned from witnessing the subsequent carnage that you don't fight momentum. Go with it or get run over ;-) Steve