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Technology Stocks : Multiple Zones (MZON) -- Ignore unavailable to you. Want to Upgrade?


To: SAMS BONE who wrote (28)11/27/1998 5:48:00 PM
From: Tom Hua  Read Replies (1) | Respond to of 475
 
John, just a mental exercise about target price. Let's compare the internet sales of MZON with ONSL, EGGS, UBID, and COOL. ONSL, UBID and EGGS provide auctioning format, but they all boil down to selling computer merchandise. Not that I think the valuation necessary makes sense but it's something to think about.

The P/S ratios are based on annualizing the lastest quarter sales data.

ONSL, P/S = 8.2

COOL, P/S = 10.8

UBID, P/S = 8.7 (market cap is based on UBID's intrinsic value in MALL)

EGGS, P/S = 5.5

If one assigns a P/S of 8 for MZON's internet division, we're looking at $33/share, add $10 for its catalog operation and you have your target of $43.

I don't know if it can get there, but nothing can surprise me in this frenzy market.

Regards,

Tom

PS. Check out DBCC. It could run away next week.