SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Roger's 1998 Short Picks

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: McNabb Brothers who wrote (1459)1/25/1998 4:34:00 AM
From: Dan Ross   of 18691
 
One more point to add to Roger's....

I am not sure how familiar you are with DCF (Discounted cash flow) valuation methods.....

It has been proven, time and time again, that with GROWTH stocks the value is in the residual value.....What the hell does that mean? It means that the majority of the price is based on years 6- infiniti....Basically people believe that growth will continue for many years.....

I have done DCFs on many growth stocks....with CTXS' growth rate and P/E assigned to it I would estimate that the price has more than taken into consideration yrs 6+.....just a guesstimate based on experience with other companies growing at fast rates also....

Dan Ross
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext