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Biotech / Medical : Agouron Pharmaceuticals (AGPH)

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To: JOHN W. who wrote (2493)10/26/1997 2:47:00 PM
From: billkirn   of 6136
 
Just to support this PE thing. My sense is that AGPH's (at $50 per share) estimated
PE of 27 for FY99 could be way off, maybe by a factor of 2. Also I think percent sales and earnings growth just might exceed microsoft's by an order of magnitude after FY99, and microsoft supports a PE of over 50.
If AGPH were to maintain a PE of 50 to 60 and earnings were to meet somewhat higher and maybe more realistic expectations, I would expect the price to be closer to 200 than 50 by this time next year.
Of course all sorts of things can happen, positive and negative.
Bill
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