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Netopia Inc. (NTPAE) Message Board

  • bot_feeder bot_feeder Jan 22, 2003 9:31 AM Flag

    fair value 4-6 bucks

    For that guy some posts back who said NTPA was overvalued, here's why they are wrong:

    bot sez, a stock at a price/gross profits of 1 is an excellent bargain. However, since there are a number of stocks out there at that valuation, you want the ones that also show:

    1). good price/tangible book ratio
    2). good basis for believing they are on a path to profitability.

    Thus, NTPA stock has exactly the characteristics of the kind of stock you want in this market. Their price/gross profit is about 1, and they have 1) and 2) above.

    Now, stocks with these kinds of characteristics are way cheaper than what the experts usually tout as "value" stocks. In other words, when bot considers a stock cheap, it means it is about 1/3-1/2 the price of what it ought to be selling at.

    While a price/gross profits of 1 is a great value, what is a fair value? Well, a ratio of 2-3 or so. NTPA should be 4-6 bucks per share.

    Give it time, it will be.

 

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