PE ratios. If a hardware company is growing at 50%
year over year, it's worth 25 to 35 X its earnings,
if they are expected to continue that growth rate.
I'm talking about a fair, sustainable value, not when
a stock runs too high, like Dell, now, and USRX, Iomega,
last year.
Can we grow by 50%/ $1.30 next year. I have been a Cleveland
Indians fans my whole life. I might be too bullish, but that's
about $2.00 by the end of '98. And, as the stock moves up, we
gain shareholders. This is both from in-the-money options, and
the $98M in notes that are convertable. We get diluted as we go.
BTW: COKE is only worth a trailing PE of 20 to 22 x earnings( and
only in the current market.) |
