Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Ticketmaster-Citysearch (TMCS) -- Ignore unavailable to you. Want to Upgrade?

To: Wade Spencer Graves who wrote (227)	1/5/1999 9:58:00 PM
From: Byron Xiao	Read Replies (1) \| Respond to of 803

I don't know what else to say but: hang on tight. This one ain't performing like EBAY as we all wished it would. My average price on this stock is $50. I told myself that if it drop below $42, I would take my loss and sell, it looks like it might cross that price soon. So if at 70, it gets 3 buy rating, what do you think about $46? a screaming strong buy? But you look at the valuation of this company, at 46.75, it represents a market cap of 3.2725 Billion. AMZN has a market cap of 19B, YHOO 25B, UBID 1.07B, EBAY 9B, Netscape 6.3B. My point is: sure $46 compares to AMZN at $370+ or 124 after split, $250+ for YHOO, $123 for UBID, $225 for EBAY is cheap, but that's not how you value stocks, you value stock base on PE and market caps, and since this is an internet play, PE don't matter, but if you look at market caps, TMCS ain't cheap. And I am already comparing TMCS to some of the best known Internet names out there. To those who think that TMCS is really worth 150, which will be a 10B+ company, can you enlighten me why you think TMCS is worth: 1/2 of AMZN, which after 3 years of existence, has just reported an annual revenue of 1B for the past year? 40% of YHOO, which is the highest hit WEB site and also does just about everything e-commerce does on the net? 110% of EBAY, really the dominant force in internet auction? or 1000% of UBID, the 2nd or 3rd most popular auction site in the internet? or 200% of NSCP, the original internet company? Please enlighten me that at $70, with a market cap of 5B, why is this internet stock a buy? What are the rations behind the analysts who put a buy rating on this stock? Why does Boston Banc or whoever thinks that 2.5M vistors/month, each one is worth $1800 to warrant a market cap of 4.5B? Does that mean if I visit the web site once a month, I will contribute $1800 of profit to TMCS? over the lifetime? over the span of 10 years? Please tell me where that $1800 figure coming from? If that's just an arbitory value, why not say $18,000/per person. Personally, if TMCS can make $180/per person who visit there website over 10 years, they are doing extremely well. Remember, I am not talking about $180 of revenue, I am talking about $180 of profit. Even assume in couple years, TMCS grew to 7.5M people, which triple the current user base, they still need to make $600 per person to warrant the current stock price. I hate to say it, but I incline to think that I am fucked by this stock's valuation. Maybe I should just stay with the power boys like MSFT, INTC, CSCO, DELL instead of trying to make money in this internet mania market.