Re: UKNM: 'lastminute share plunge catastrophe/disaster'

[Paul Gill]

At 16:56 21/03/00 -0000, you wrote:

>Prepare to see their shares rise in the next few months.


Why? They are valued at around 460m as I write this (probably less by the

time it reaches the list). Isn't that enough for a company who has found it

difficult to convert users to buyers, and who is losing money hand over

fist?


If you show me the sums whereby you can sensibly get from the number of

*purchasers* at LastMinute, and their average spend on the site, to a

valuation of above 250m then I'll take you out for dinner at a posh London

restaurant.


I know companies who are forward looking, have good management, make

profits and yet because they are deemed 'unsexy' in today's market are

valued at less than 200m.


I agree to a certain extent with Martha Lane Fox's points that they have

established relationships with lots of suppliers, and that the 'space' they

occupy is difficult to replicate - but is this (together with a 'strong'

brand) really worth 480m?


I wish them well, but their valuation is way over the top. Many private

investors also believe that the float has been the catalyst for the

mini-crash/correction in 'tech' stocks recently (the c.20% drop in the

sector over the last week) - caused (as is widely believed) by the greed of

the banks running the LM floatation.


Cheers,


Paul.


nb this is a personal view of a private investor, and in no way represents

the company for which I work.



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