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Technology Stocks : Specialty Teleconstructors, Inc. (XMIT) -- EXCITING! -- Ignore unavailable to you. Want to Upgrade?

To: F. Lynn who wrote (372)	8/21/1998 12:45:00 PM
From: 18acastra	Read Replies (3) \| Respond to of 418

Aggressive comparable valuation leads yields $15/share. I think Pinnacle IPO was pulled at a valuation that was equal to about 15x 1999 EBITDA w/acquisitions. Comparable EBITDA estimate for SCTR with acquisitions for 1999 I think is $21mm. At 15x this number (this multiple is high, SCTR should get lower multiple than Pinnacle as SCTR smaller/less towers/less proven) yields $300mm valuation for SCTR. Divided by 16mm shares outstanding = $18.75 a share. Believe this is high because SCTR should get lower multiple than Pinnacle and valuations in this group still ridicuously high anyway, and will come down after people figure out real growth prospects and how badly acquisition multiples have been inflated due to massive capital inflow into the sector which has ruined the economics of many tower acquisition models. I think SCTR continues to defy gravity primarily because small float and held by individual investors that don't understand valustion as opposed to institutions. People now psychologically may think stock is cheap because it has sold down from $48. Reality is, it is still ridicuously overvalued and likely worth $10-$15. My opinion.