To: Life Coach who wrote (5917 ) 1/16/1999 11:20:00 AM From: Anaxagoras Read Replies (1) | Respond to
Thanks for the comments, Life_Coach.<<You didn't mention the fact that EGGS has two auction sites in addition to its etail site. >> <<Take into consideration growth of the online business at over 100% per year and project out 3 - 5 years and that would spell tremendous profits. >> No. That growth spells tremendous revenues ; the only way they'll flow to the bottom line is if we get nice margins. Let's run with this, though: pretend in make-believe-land that EGGS manages a 5yr CAGR (i.e. compound annual growth rate) of 100%, and start off with a base of a TTM revenue figure of about $240M. The end of the 5th year TTM revs would stand at $7,680M. Remember that at the end of the two recent years that EGGS was profitable, '95 and '93, EGGS traded at a PSR of .17 and .18, respectively, remarkably close. Another way to think about this is that at the end of FY95 EGGS traded at 17% of its TTM revenue, and at the end of FY93 it traded at 18% of TTM rev. Applying such a figure to EGGS after the kind of spectacular sustained growth we hope for would give EGGS a market cap of $1,382M, or just a little more than 2x what it is today. And that would be the price around the year 2005! <<The Internet is still in its infancy and there is such unbelievable potential with the companies who have recognition and are the strongest in their niches. >> italicize a word like 'dog', before the word put '<', 'i', '>' (without the single quotes and commas), and then after the word put '<', '/', 'i', '>'. The description of this is convoluted because if I actually typed it normally, a word would be italicized but you wouldn't see how I did it!
