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Technology Stocks : USRX

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To: Scrapps who wrote (7373)1/5/1997 8:46:00 PM
From: Tulvio Durand   of 18024
 
$5B in 2000 is a shoe-in. Remember that USR is saying $3 B in 1997 is a done deal. All it takes is an average growth rate of 19% to make the $5 B in 2000. If the analysts are correct with their average projected 5-yr growth rate of 35% (Zacks), then the corresponding year 2000 revenues would be $7.38 Billion. Using current net profit margin, 9%, yields $664 Million, or $7.55/sh for the 88 Million shares outstanding. Based on average (13 to 71) PE = 42 the projected earnings correspond to a share price of $317 in year 2000. Not bad eh?

A similar analysis yields a stock price of $140 in 1997, a figure that both Fred Fahmy and I independently arrived at.

Regards,

Tulvio
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