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Gold/Mining/Energy : ECGOF: Anyone following this company?
ECX 1.720+3.6%Dec 31 3:59 PM EST

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To: Frederick Menslage who wrote (241)4/6/1997 9:50:00 PM
From: david james   of 269
 
PEG comparisons

I was looking at First Call and their comparison of ECGOF to the industry averages

ECGOF growth rate
Last 5 Years 87%
1997 estimated 48%
Industry Growth Rate: 12%

Ratios Relative To: Company Industry Sector WSJ/DJ

P/E on 1997 Cal Yr Mean 6.0 15.60 17.11 16.31
PEG on 1997 Cal Yr Mean - 1.32 1.78 1.40

I am not sure why they didn't calculate the PEG based on 97 earnings.
With a P/E of 6 and growth of 48%, the PEG is 6/48 = 1/8 = .125

To have the average PEG of the industry ECGOF would need to trade at

Average PEG * Growth * Earnings = 1.32 * 48 * $1.20 = $76 /share

In other words, to be fairly valued with respect to other companies in
the industry, the stock would need to trade at $76/share by the end
of 1997. That number would be higher if they beat $1.20.

So if it reaches $76/share before the end of 1997, then one might
want to consider selling. <g>

It seems rather obvious why the CEO is doing whatever he can to buy
shares.

David

P.S. Looks like the Fool web page message boards are not the same as
the AOL Fool message boards,
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