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Technology Stocks : Omega Research (NASDAQ:OMGA) -- Ignore unavailable to you. Want to Upgrade?

To: Pkelly50 who wrote (287)	3/7/1999 10:17:00 AM
From: Herc	Read Replies (1) \| Respond to of 516

Your fearless skeptic also keeps a list of multiples companies pay for other companies in buyouts. For Software, I have three companies (2 from the last year). Average multiples/share: Revenues 3.12, cash flow 19.87, earnings 62.5, & book value 2.44. Using OMGA's numbers for the past year, these multiples would predict a private takeover price of $3.79. Also, I'm not an accountant, but I do know R & D cost have to be amortized. So increased R & D would affect stated earnings.