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Strategies & Market Trends : Sharck Soup

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To: Sharck who started this subject5/3/2001 3:52:17 PM
From: Devin123   of 37746
 
Asensio & Company: VeriSign and Its Analysts Have Sown Inevitable Investor Disappointment
NEW YORK, May 3 /PRNewswire/ -- The following is being issued by Asensio & Company:

VeriSign, Inc.'s (Nasdaq: VRSN - news; $59.40) 126% stock run-up in the past month has caused it to trade at 219 times its latest twelve-month net operating income and 145 times 2001 projected net operating income. This price level is unsustainable, even assuming VeriSign meets its analysts' large and highly questionable growth projections for this year and next. However, there is no certainty that VeriSign will meet even this quarter's relatively modest projections, much less each of this year's ensuing quarters' higher and higher projections, or next year's even higher expectations.
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