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Re: austin01 post# 6283

Wednesday, 10/16/2002 12:42:57 PM

Wednesday, October 16, 2002 12:42:57 PM

Post# of 78729
austin - it's just my opinion but i have never thought that revenues would be the one single thing that moved the stock price of NVEI. and although i will qualify it, i don't think revenues will be the benchmark by how the price of NVEI is judged by future investors. in fact it may even hurt the price.

now for the explanation of why i feel that way. and i think this pertains to almost all start-up and developmental companies.

a vast majority of investors invest on potential and speculation of what may lay in the future of any given company and/or the sector they are in.

for example, if a drug research company comes out and says they have a cure for cancer that stock will see it's price move up quickly. their " cure " may be years down the road until it is in a form that can be brought to market, but investors will drive the price up on speculation of potential revenues. at this stage nobody can put an accurate price to earnings ratio on the company because they have no revenues to date. but as soon as the company realizes revenue from their " cure " investors will try and put a p/e ratio to the stock price and if speculation has driven the price beyond what these numbers indicate the price may very well fall down to the appropriate levels for their sector.

i feel the same scenario will play out in regards to NVEI. once NVEI announces speed and distance numbers investors will naturally " speculate " on the market they are in and exactly what percentage of that market they feel NVEI will be able to capture. therefore it's my opinion that the price of NVEI will increase on speculation first, then solid numbers once they start to come in.

of course NVEI has to produce these testing numbers, they have to prove to their target market that their technology works and they have to convince potential investors of the same thing.

if they can do all of the above things then i think we'll see the price of NVEI stock move up well before any substantial revenues hit the bank account of NVEI.



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