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Technology Stocks : Audio and Radio on the Internet- NAVR -- Ignore unavailable to you. Want to Upgrade?

To: vinh pham who wrote (4547)	1/18/1999 9:01:00 PM
From: Lane Hall-Witt	Read Replies (1) \| Respond to of 27722

I chose that figure simply because that was the "starting point" before the IPO runup began. I actually think NAVR is worth more; however, I wanted to use figures that were conservative, so the pre-hype price seemed a reasonable number. A couple of things to keep in mind regarding NAVR's value, excluding NetRadio: (1) NAVR's core business is wholesale-style marketing and distribution, which doesn't command a very high price/sales multiple. You shouldn't necessarily expect high sales to translate into high market cap in this sector. An Internet company with $200 million in sales would be worth many billions of dollars; however, a 0.3-0.5 P/S for a distribution company is a fairly reasonable number. (2) NAVR should return to profitability after it moves NetRadio off its operating statement. NetRadio has been a drag on earnings ever since NAVR acquired it.