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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Gary Stover who wrote (18888)	3/9/1999 9:39:00 PM
From: lazar921	Read Replies (1) \| Respond to of 122087

part 2 the YHOO "clinic". more jive on the YHOO boards. To get that $6 million, we assumed 5 cents per trade. Not sure what the real number would be. At this point, we have the following: New Users $62,500,000 Upgrades $34,500,000 Guaranteed $5-7 million Revenue Sharing $6 million Total : @112,000,000 revs within 18-24 months. Let us now assume they return to their peak operating margin of 30 or higher by end of next year. They returned that when the product was flowing, as it is now, in 1997. A 30% margin drops $30,000,000 near the bottom line. Taxed at 39.6%, they net $18,000,000. And guess what, we haven't even scratched HistoryBank or radarScreen, the latter of which one analyst and all of OMGA think can grow to become their most successful product ever. Conservatively using $18 million, that equates to a current P/E of of 15 versus a market of 28X and a company growth rate of 25-30% next few years (with NO radarscreen, no History Bank rev's in there. The analysts have told me they have not even factored H o R into their current models, despite their 18 and 30 price targets. Add to this one of the hottest sectors in the market (everybody wants OMGA clients-why-they are smart, obviously high net worth types-as the shorts point out everytime they whine about the $2,500 price. And you know what else. They trade. Alot. There is great value there. Improving margins, resounding revenue turnaround-the firm tells me they are 6 weeks backlogged-, a consolidating sector, enormous analyst support and one more coming I think(H&Q)-they have been fencesitting, waiting for the first sales numbers to come back, and serious buyers wading in here bode well for our friend. Read next post for final installment --------------------------------------------------------------------------------