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Technology Stocks : Internet Analysis - Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (64)	2/2/1999 5:27:00 PM
From: musea	Respond to of 419

Chuzzlewit, Who would have thought that there would be as much interest as there has been? The discussion has been of very high quality, as I had hoped in starting the thread. Thanks to you and everyone who's posted. There is an item I posted earlier, having to do with front-ending the high growth. My contention was that we did not really have to look six years out to find enough free cash flow to support today's valuations as you've feared, even from a DCF standpoint, provided there was enough growth in the first few years. If the growth rate is high enough today then we might be able to justify today's valuations. In some sense. ;^) So it might be fruitful as a secondary avenue in understanding how to value an AOL or an AMZN to try to see if the current growth rate (even if it tapers down over time) is sufficient to make these stocks attractive. This depends on today's business relationships and today's income model. A good quantitative analysis of what current growth rate could be construed to justify today's prices might be interesting. I am working on such an analysis. Excel, here we come! -musea