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Lightspan, Inc. (LSPN) Message Board

  • bot_feeder bot_feeder Jun 5, 2001 3:23 PM Flag

    I'm in

    Got 2000 shares. I don't consider LSPN particularly cheap, but this is one I think you have got to put a couple of chips on.

    Now, it is somewhat hard to get a handle on their price/sales ratio, because there's all that deferred revenue.

    They seem to be running about 10 mil revenue per quarter, but they may be building up some of that deferred revenue also.

    So, anyway, my wild guess is that maybe their "true annualized revenue", if there is such a thing, is about 50 mil per year or so.

    Now, market cap is 80 mil or so, so they are a price/sales of close to 2. The lower number that you see for example if you do "profile" on NDB of 0.8 is misleading because they had a bunch of deferred revenue they cashed in sometime within the last year. 40 mil or something.

    At any rate here's my lowdown on LSPN:

    Negatives:

    1). Not a bargain stock on valuation basis.

    2). History of large losses.


    Positives:

    1). Headed toward cash flow positive (hopefully)

    2). In a high growth field.

    3). Got some decent internet revenue along with the traditional software sales, the internet stuff could show big growth.


    ------

    If LSPN goes down to the low 1's, I'll buy more.

    If it goes up, I'll hold.



    Overall, I am mildly bullish on LSPN.

 

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