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Gold/Mining/Energy : Games Trader -- Ignore unavailable to you. Want to Upgrade?

To: Ruby who wrote (321)	4/23/1999 5:08:00 PM
From: Professor Dotcomm	Read Replies (1) \| Respond to of 1239

Sorry to intrude, Ruby, but a quickie interruption here. GTR has currently about 40M shares (& special warrants) issued, market cap at $5 around $200M. 3Q revenues $12.2M i.e. annualized $49M. Price to sales about 4 times. I see about $80M revenues for calendar 99 from wire releases so let us say 2.5 times current. So far so good. Probably a good price would be $4. However if (a big IF) the e-commerce site in September attracts traffic, the whole equation changes. A good site would inject incremental revenues at low incremental cost. GTR as a group would be controlling ultimate selling price (unlike Amazon or Chapters) and this could lead to a materially enhanced multiple, IMHO. Here, price to sale multiples are around the 12-15 times (some are over 50 times). I agree with you. Lots of imponderables, lots of uncertainty. Lets discount heavily all the ifs and buts - but don't discount the baby totally down the plughole. Lets go for a 6 times multiple (if the site succeeds). Well then we would be in the teens.

To: Ruby who wrote (321)	4/26/1999 8:02:00 AM
From: Dettmer	Read Replies (1) \| Respond to of 1239

First of all, I noticed that Dotcomm has already posted the # of shares outstanding and revenue info. Personally, I go by the Yorkton forecast as published in their research report. If the company earns $0.22 this year, I am ready to give it a 20 P/E multiple because of their growth rate and the fact that they operate in a vast market which is growing at a superior rate (the video game industry). Anything over that level, I view as speculation on their upcoming e-commerce strategy. How much is their e-commerce strategy worth? Your guess is as good as mine. For now it just looks as if the stock wants to go higher. How long is this going to last? Who knows? Enjoy the ride. It would appear that you inherited GTR because you were in Legacy. Well guess what? GTR is helping us make some money back. I am not complaining about that. Good luck.