Forum Archive Index - February 2001

[Phil Eriksen <phil@acepay.co.nz>]

cosykiwi wrote:
> 
> What does anybody think about InraNet.

>From article on www.nzherald.co.nz :

--
After the issue, Indranet will have a market capitalisation of just over
$195 million. The five million shares on offer constitute 2.56 per cent
of the company. 
--

$195 million sure sounds like a heck of a lot of money to me.  I confess
to not looking at Indranet in depth - I had a go and found it all a
little hard to get a handle on.  

I think even the biggest supporter of Indranet would have to regard the
share as "speculative".  Indeed, the herald article says :

--
But as the prospectus and investment statement point out, Indranet is
still in the early research and development phase of bringing its vision
to market. 
--

My argument is not with the technology (which I don't understand) or the
management (don't know anything about them) nor the future potential
(haven't got a clue).  My only query is regarding the valuation.  Even
if the technology is top notch, the management are superb and the
potential vast - isn't that very much priced in?  

For the kind of risks that seem to be involved here, you would want the
potential for the shares to be worth 5 times what they are now within a
couple years - billion dollar market cap?

Can someone confirm the $195 mil valuation isn't a misprint?

Cheers,
Phil


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