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Strategies & Market Trends : Due Diligence - How to Investigate a Stock -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (505)	5/30/1999 12:16:00 PM
From: Zeev Hed	Respond to of 752

There is no alternative, of course, but you can still make some assumptions, like count the potential market, the expected penetration, expected market share, etc, or even use the standard s curve penetration. Part of the "uncertainty" is, of course factored in the discount rate you chose as the hurdle rate. Anything that is drastically under your hurdle rate you call "ggod", anything above it, you throw away (VBG). Of course, some people i know ion the VC business just simplify the whole thing and when looking at a plan, they see if they can get five years down five times their investment. The one time in 10 where they get a 10 bagger, cover for all the other where they barely break even on cash in and on those that fail. Zeev