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Technology Stocks : VeriSign (VRSN)
VRSN 249.60-0.8%11:08 AM EST

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To: Patriarch who wrote (345)1/20/1999 10:26:00 AM
From: Barnhart  Read Replies (2) of 1285
 
This is good news for Verisign. I know this is an Internet play and fundamentals tend to go out the window, but I want to show you their PE in two years based on the current estimates.

From their own website, they have yearly earnings est. of .46 for the year 2000, which will be reported Jan, 2001. Based on a price now of 85, that gives them a PE of 184. If they grow even faster than what the analysts' are predicting and they manage to triple their eps for the year 2000, to say $1.38, their PE would still be high at 61.

The volatility of this stock of the past few months has been very exciting and I think all of the potential upside is already in this stock and there is much, much more downside risk than upside.

Brian
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