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Technology Stocks : TLAB info?

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To: Trey Yon who wrote (1268)10/3/1997 10:37:00 AM
From: Chuzzlewit   of 7342
 
Trey, when you buy a growth stock you are buying future earnings, and that's why those benchmarks are meaningless. Cash per share and book value don't add value to the stock -- they underpin the value in case of trouble. Price to sales ratios are totally meaningless. These are the benchmarks that have meaning: long-term eps growth rate (about 35%); forward looking earnings estimate($1.50 - $1.60 Q4 '97 - Q3 '98); long term interest rates about 5.8%; inflation rate <2%; gross margin (about 62%).

First, you cited T/A to support your conclusions, and I told you that was nonsense. Now, you look at this stock as if it were a value play, and that is nonsense because this is a growth company, not a turn-around play.

Regards,

Paul
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