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

To: Lane Hall-Witt who wrote (4551)	1/18/1999 9:07:00 PM
From: Byron Xiao	Read Replies (1) \| Respond to of 27722

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. Yeah, the #2 you mentioned was very valid. But I still think that spin off 10% of Netradio will go a much longer way than moving Netradio off its Operating statement. Face it, if NAVR just spun off the whole Netradio, it will not even worth $10. This is a low margin business. Netradio is contributing 2/3 of the market cap value to NAVR right now! Don't completely spin it off, it will hurt investors big time if they do that.