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Technology Stocks : CYRIX / NSM -- Ignore unavailable to you. Want to Upgrade?


To: dumbmoney who wrote (32622)6/2/1999 8:15:00 AM
From: Labrador  Read Replies (1) | Respond to of 33344
 
>>Let's assume that there's a 10% chance that Foveon will become a $1 billion company (market value) in a couple years - pretty generous assumption. That gives an 'expected' return of $100 million, or $45 million for NSM's stake. $45 million is a mere 1.5% of NSM's current market value - insignificant.<<

Confused by your analysis. Let's say that there is a 50% chance that the Foveon could turn the photography industry on its ear within 5 years. Why is the market capitalization only $1 billion. Why not $100 billion? [How did you get $1 billion -- why would the company remain a small cap stock? Why not a Kodak at a minimum?]

How did you get a 10% chance? Is this just a number you picked out of the sky?



To: dumbmoney who wrote (32622)6/2/1999 1:31:00 PM
From: Dan B.  Respond to of 33344
 
dumbmoney, while I agree that the success of Foveon is not assured, I must add that if your 10% chance of Foveonics becoming worth a billion comes through, the correct number for NSM's share of Foveons market value would be 450 million or 15% of NSM's current market value(by your numbers). I'd add that Foveon is only but a small part of why Gilder feels NSM will undergo great growth soon. But hey, let NSM fall for now- I don't own it- yet.

Dan B