Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Log On America, Inc. LOAX -- Ignore unavailable to you. Want to Upgrade?

To: Islander99 who wrote (161)	6/2/1999 12:09:00 PM
From: Glenn Petersen	Read Replies (1) \| Respond to of 353

LOAX is merely working its way toward fair value, which IMHO, is somewhere near $4-$5 per share. They are an ISP pretending to be a CLEC. Their sales last year were approximately $760,000 and they may have 4,000 subscribers. When you stack them up against the other public ISPs, they are lacking. The following analysis is based on a review of the first quarter 10-Qs: Internal Qtr to Qtr Percentage Valuation per Market cap/ Subscriber Decline Subscriber Sales Growth From High LOAX 33,358 175.10 N/A 47.97% BIZZ 3,079 9.94 N/A 50.00% ELNK 1,399 6.23 11.55% 48.96% FLAS 1,456 9.70 10.49% 61.17% GEEK 1,559 7.29 14.58% 70.70% MSPG 1,871 10.33 9.81% 46.99% ONEM (1) 1,072 5.45 11.77% 57.35% PRGY (2) 2,504 13.14 16.04% 52.47% (1) Adjusted for the acquisition of "The Grid." (2) Excludes Prodigy Classic subscribers. The above analysis is based on June 1, 1999 closing prices.

To: Islander99 who wrote (161)	6/2/1999 12:36:00 PM
From: ISP_Investor	Respond to of 353

I couldn't believe it when they went public either. It takes a banker who's pretty hungry to go out on a limb on this one. I know an investment banker at a second tier firm who the deal was shopped to who laughed his tail off when they went public. He passed on the deal immediately. In addition, the person who put me on to this one as a potential short was the CEO of another ISP who couldn't believe his eyes when he saw their valuation. I looked at an ISP that was actually larger (in sales and recurring revenue) and had a better management team than LOAX and passed on it when they asked for 900K for the whole company. They actually had a stronger customer base of straight business customers. I offered them ~700K for the company and he didn't accept it. If you want to see what this is really worth then send an e-mail to the following join-isp-investor@isp-investor.com and get up to speed on what these things really sell for and you'll see that this ISP is still overvalued by $80,000,000 if you give them credit for their cash and revenue for last year and assume a healthy growth rate. If your buying the stock at a 111M valuation (today's valuation) you should do some more homework and post it on the board for others as to why you would break the rules on this company. If you tried to sell this company in the private market (minus the cash raised from the offering), you'd get less than $4,000,000. I personally wouldn't pay 4M because you'd be assuming an enormous growth rate. THERE HAVE BEEN ZERO ANALYST REPORTS ON THE STOCK THEREFORE NO INSTITUTIONS WILL BUY IT. THE VOLUME IS TOO LOW, THE SPREAD IS TOO HIGH AND THE UNDERWRITERS TOO SUSPECT FOR A MUTUAL FUND, PENSION FUND, OR ANY FUND TO TOUCH. They won't be able to do a secondary offering to get rid of the locked up shares because there aren't any institutions that are clients of Dirks that would take the stock so the price will be disrupted when the underwriter unlocks the private investors. THE ONLY RISK RIGHT NOW FOR THOSE SHORT ARE 1) THE PR FIRM PUTS OUT A BOGUS PRESS RELEASE 2) THE UNDERWRITER CONTRACTS WITH ANOTHER FIRM AND THEY PUT OUT A BOGUS ANALYST REPORT