Valuation of Internet and Technology Stocks offers practical information on how to value internet and high-tech companies more accurately. The book reviews previous practice, highlights the deficiencies in existing stock market techniques, and shows how to modify or replace them. It also demonstrates how the New Economics necessitates new forms of investment analysis. This book presents new ways of looking, researching and valuing internet and high-tech companies. It explains why there has been a high correlation between high loss companies and a rocketing stock price. It questions whether there is still a place for discounted cash flows when there is no cash flow to discount. It also considers what new methods are available to value super growth companies and whether these methods are any better than existing techniques. Chapters deal with a wide range of topics including: where technology/internet stocks fit in a new economy; how you value traditional common stocks; application of the Porter model to the valuation of technology/internet stocks; problems with applying traditional valuation models for technology/internet stocks; derivative markets and real options; and the lessons that can be learned by investors from the year 2000 collapse of technology/internet stocks. This text will be of interest to traders, investment managers, institutional investors, plan managers, and finance professionals. * Investigates why there has been a high correlation between high loss companies and a rocketing stock price* Questions whether there is still a place for discounted cash flows when there is no cash flow to discount* Considers what new methods are available to value super growth companies and whether these methods are any better than existing techniques

Investors ready to catch the next golden opportunity may find it here, along with the no-nonsense challenges each company must overcome as they pursue market growth. Includes in-depth profiles, stock charts, and Web site graphics. 100 screen shots/charts.

The author of the bestselling "100 Best Stocks to Own for Under $20" presents the latest information on Internet stocks, including 1999 sales data with fourth-quarter results. Analysis of nine key sectors includes an industry overview, explanation of key technologies, and future prospects.

New ways of looking, researching and valuing these companies need to be addressed. Valuation of Internet and Technology Stocks offers practical information to enable institutional investors to value internet.coms and high tech companies more accurately. The author highlights the deficiencies in existing stock market techniques and shows how they need to be modified or, in most cases, replaced with techniques more suited for the revolution in economies which had taken place since 1991. The economic rules in the financial market place have changed to the extent that strategies successfully applied in the post war era have now been relegated to the deleted items box. 'Valuation on Internet and Technology Stocks' reviews existing stock market techniques highlighting their deficiencies and show how the New Economics necessitates new forms of investment analysis. * Investigates why there has been a high correlation between high loss companies and a rocketing stock price * Questions whether there is still a place for discounted cash flows when there is no cash flow to discount * Considers what new methods are available to value super growth companies and whether these methods are any better than existing techniques

Inhaltsangabe:Abstract: The purpose of this thesis is to discuss some important reasons for the recent boom of Internet stocks, and to show and assess different methods to evaluate them. The Internet is a medium which is yet in the early days of its development and which will revolutionize communication habits, trade and leisure time behavior in an unseen manner. I will show this in the chapters 2 and 3 with psychological reasons for the recent boom. After that I present 3 typical Internet companies (Yahoo!, eBay, and Amazon.com) with their business content, financial data, and future outlook. Afterwards, the analyzing part of this thesis starts, and I demonstrate which figures an investor should look at in order to have a broad overview about the investment. In chapter 5 I present some financial figures from both the income statement as well as the balance sheet, in chapter 6 I give a survey of ratios which are used from analysts and make some comments about how practical they are. Subsequently, chapter 7 deals with more traditional valuation methods, used by institutions like the Federal Bank of America. These are general methods in order to show whether markets are over-/ undervalued or not. After that, I present the valuation models used by investment banks: Economic Value Added (EVA, chapter 9), Discounted Cash Flow (DCF, chapter 10), Real options theory (chapter 11), and multiples (chapter 12). In the last part I summarize the outcome and give an outlook how Stock orders are based on expectations only. Inhaltsverzeichnis:Table of contents: 1.Introduction1 2.Day traders6 3.Principle of floating12 4.Presentation of 3 typical Internet companies: Yahoo!, eBay, and Amazon.com15 4.1Yahoo!16 4.1.1Business description16 4.1.2Financial data20 4.1.3The outlook24 4.2eBay26 4.2.1Business description26 4.2.2Financial data27 4.2.3The outlook29 4.3Amazon.com31 4.3.1Business description31 4.3.2Financial data34 4.3.3The outlook36 4.4Comparison eBay versus Amazon.com41 5.Financial figures to look at 5.1Income statement analysis45 5.1.1Sales45 5.1.2Gross margin46 5.1.3Operating expenses46 5.2Balance sheet analysis47 5.2.1Inventories47 5.2.2Cash position47 5.2.3Quality of the management48 5.2.4The competitive landscape50 5.2.5Market position50 6.Ratios51 6.1Return an marketing52 6.2Price earnings to growth52 6.3Price/earnings (P/E) ratios as a traditional method56 6.4Price/sales ratio57 6.5Debt/capital [...]

Cyberstocks is the investor's road map to the new landscape of companies directly involved with the Internet. You'll get the hard facts on who is building the networks, setting the standards, creating the content, and even setting up systems for payment. Profiles are given of every major player, with all the information you'll need to make smart investment choices.

An analysis of the inflated business potential of the Internet.