To: Kimberly Lee who wrote (4095 ) 1/16/1999 9:45:00 PM From: ztect Read Replies (2) | Respond to of 5102
hey Kimberly, One more question for you. How quickly after a company's IPO can it announce a stock split? Are there any specific constrictions? I ask these questions because MKTW incredible almost recording setting first day percent close (second to another whose named I can't remember that opened at 9), seems to be following the old laws of supply and demand. Seems to me the demand justifies more supply, and a 4 for 1 split still only puts 11,000,000 shares in the float with 44,000,000 outstanding. Guess part of the answer has to do with the number of shares authorized more than any "traditional" notions of market caps that seem to have no bearing on the valuations of internet stocks. Haven't checked the shares authorized for MKTW, do you know that number? A 4 for 1 split with a share price of 50 equals market cap of $2.2 billion which relative to other internet like Yahoo or AMZN is down right dirt cheap. This relatively small micro cap by internet standard justifies a share price of $50 for DBCC according to CNBC models which are in reality pretty silly. Did you read "Joe Pirate's" post...quite funny... Wouldn't be surprised if Joe's some hot shot like k.b. because he's the only one who has put forth the only "sensible" valuation model so far that I've seen..."the monica model"...posted on SI for the "valuation" of internet stocks.. Here are his posts again below to save you the bother of having to re-read back through the thread... Sincerely, ztect ===============================A MUST READ POST apologies in advance if anyone takes offenseMessage 7318991 To: ztect (4078 ) From: Joe Pirate If internet stock prices were based on fundamental, I think Yahoo and company would be listed on the Nasdaq BB, ha ha ha!!! Instead YAHOO is flirting with $1000 (pre-split) region and Amazon and others are going where no other loser have gone before!! ha ha ha!!! Makes me laugh when people do "internet stock modeling".. I can't stop laughing.. The last guy to do this was last year on the AMZN thread, apparently, he short AMZN at $42, a few hundered thousand dollars worth.. Last I looked, AMZN broke $500 (pre-split).. $42 to $500+... hmmm.. I guess the model needs a we-bit of fine-tuning! Feel bad for him, really, not his fault, he was doing the right thing! Shiet happens.. Pirate ================================================== To: Joe Pirate (4085 ) From: Joe Pirate Message 7319071 Why will DBCC go up Tuesday? Instead of using them fundamental models, lets use the Monica Lewinski model.. First, DBCC down.. just like the Monica downstroke, since her nose touchs belly at this point, she must back off, hence DBCC will rise... Once she reverses course, the piston reachs max travel, reverses again and rallies for nose-bumping-belly again, hence DBCC will drop Wednesday. Repeat as necessary. Really, you should buy her book "You too can make money on the ups and downs".. $19.95 @ Amazon.com.. Pirate =========================