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Microcap & Penny Stocks : Microvision (MVIS) -- Ignore unavailable to you. Want to Upgrade?

To: Josef Svejk who wrote (2167)	3/27/1999 1:00:00 PM
From: CAP	Read Replies (1) \| Respond to of 7720

Humble one.. looks good as far as the model goes. Am a firm believer in this company and have put money where the verbage is. Spoke with a friend who told me Boeing IS working with MVIS for their JSF helmet design. This aspect is no longer a "maybe." The conference call was another big plus re: commercial product efforts. Have listened to many c/c's over the years and that one was a duzie. We have a winner here! CAP

To: Josef Svejk who wrote (2167)	3/27/1999 2:39:00 PM
From: Obewon	Respond to of 7720

Interesting but not useful in this case. I value small businesses and assets full time here in Seattle now so I have a reasonable knowledge of the factors that go into the bankruptcy indicator. Unfortunately, one of the weaknesses it has is its dependence on "hard numbers". As an R&D outfit (until commercial product is available) with no steady revenue numbers and large amounts of intangible assets, the indicator you mentioned isn't going to be very useful. First, the value of the company's intangible assets may not reflect their true value (its an estimate of what an uninterested buyer would pay for the technology rights). If MVIS is like most other companies, the value of intangible assets reflects only the cost of developing the technology and does not necessarily increase after that until market demand has been proven through commercial development. This is because these development costs can be used by accountants and auditors to justify a specific value. (Auditors, the IRS and the SEC all seem to frown on estimates when other numbers are available.) Second is that it ignores the impact of the availability of equity capital. As we saw, the company easily went to the equity market and received additional working capital. Thus, the bankruptcy indicator only considers the advisability and availability of debt financing. This also assumes that the bank takes the company balance sheet at face value and doesn't require an appraisal done on its major assets (land, buildings, major equipment, large intangibles, etc.). Any smart banker will however require these if the loan looks marginal because these assets can be significantly under or overstated due to depreciation schedules, rising market prices, market development, etc. So you can see how even a company that the bankruptcy indicator says is poor (great) can still be in decent (awful) financial shape. Obewon P.S. Anyone who would like to discuss asset or business valuations or who has a valuation you want done please feel free to send me a private message and we can talk.