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Technology Stocks : DRIV (DIGITAL RIVER). Get in on internet IPO. -- Ignore unavailable to you. Want to Upgrade?

To: Raj Ramaswamy who wrote (377)	11/20/1998 2:39:00 PM
From: M. Frank Greiffenstein	Read Replies (1) \| Respond to of 3198

Target = $25... Raj, I was trained in old fashioned means of valuation. I continue to be mystified at the current vogue of valuing companies at estimated earnings three years down the road! I am mystified at valuations of hundreds times sales. So I really have no confidence in any target. But relative to other crazy Internet valuations, DRIV remains cheap. And the funny thing is, DRIV may have the largest potential market with few competitors . For all its greatness, AMZN still has numeorous and sizable competitors with lots of $$$. Steve Harmon of the Internet Newsletter (on Yahoo!) is of the opinion that you should pay up to 20 times sales for a promising Internet stock. If we annualize last quarters results, we get about 21 million ins ales, OK? 20 X 21 = 420 million. Divided by 16.9 million shares, we get a stock price of $24.85. Question is, do other people use 20 as the "magic number"? If they do, then we would predict that $25 is resistance until the next earnings report, barring any fantastic news of course. DocStone