Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Digital Lava Inc. (DGV) -- Ignore unavailable to you. Want to Upgrade?

To: Instock who wrote (105)	3/21/1999 8:31:00 PM
From: ayahuasca	Respond to of 343

I generally agree with your conclusions but would like to add an even more bullish tone. DGV is expected to earn .72 cents a share next year. I am trying to get more of a handle on them to see just how accurate that estimate is, but assuming it is remotely correct, DGV has the potential to really move. As we all know few 'internet' related stocks are projected to earn that much by next year, yet many of them are assigned astronomical valuations. With a current market cap of approx 30 million and revenues projected at 4.1 million for current year, 18 million for 2000 and 36 million for 2001, DGV seems to have alot of room to grow. "In terms of projected revenues, Digital Lava has a low valuation in comparison to other companies involved in digital video software. Macromedia currently trades at approximately 11X sales and Real Networks trades at approximately 52X sales. In contrast, Digital Lava currently trades at approximately 5X projected 1999 sales and 1X projected 2000 Sales" and their growth rate is much greater currently. The current Business Week mention harps on the same point. By any measure DGV is a very undervalued internet play with a very bright horizon. (BTW, I live in NYC and saw the 'DGV Issue" on the newsstand today so its out at least here). Factor in the small float and the inevitable next internet buying wave and DGV really gets me excited. I like it! I just wonder how the AMEX listing will effect it. Other than that I am pretty comfortable with this.