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Microcap & Penny Stocks : Xin Net Technologies - BB: XNET - The Next Internet Stock? -- Ignore unavailable to you. Want to Upgrade?

To: praguepivo who wrote (584)	3/25/1999 12:03:00 PM
From: FFNEODOC	Read Replies (1) \| Respond to of 1593

AOL vs IMOT vs XNET; Target Price? I'll repost my Market Cap & Revenues Analysis, you can judge for yourself what the target price should be. Note that our revenues estimates are retrospective(1998) for XNET & are probably conservatively low. See Message 8340359 The current run-up in XNET has been with no news, imagine what will happen when we get some. Market Cap & Revenues comparison; XNET vs IMOT vs AOL using share prices from 3/19: AOL has a Market Cap (MC) of 122 billion. MC of XNET =$12.3 million, IMOT = $40 million. REVENUES Estimate; XNET 1.7 mil, IMOT .28 Mil, AOL 4 bil MC/R XNET 7.2, IMOT 143, AOL 30 P/E XNET 27, IMOT 5000, AOL 540 The ratios for the Chinese ISP's might be justified in being larger than for AOL, since in the next 5 years there will be a 16 times increase in Internet users in China, and only a 3 times increase in the US. (See chinavista.com ) At any rate, by comparison XNET clearly appears to be undervalued at this current price level. MC/R ratio may be a more important indicator than P/E, since Top Line growth (Revenue) is probably more important in China at this stage (Like it was to AOL 3-4 yrs ago... 1997 AOL lost $5.22/share). In other words, you would want to sacrifice some earnings to obtain a larger market share in the current Chinese competitive environment.