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Technology Stocks : Quest Software Inc-(QSFT)

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To: Lucky888 who wrote (45)9/17/1999 10:55:00 AM
From: Lucky888  Read Replies (1) of 67
 
QSFT -- a repost from RB:

Q:

Lucky888, qsft's earnings growth for 00 is 250%,

Is this the reason that you think it will go down?

How many company have 250% earnings growth?

For the software sector, next year's growth is 30 %, s & p is 10 %, qsft is 250%.

So, I still don't know why you think this company is so bad.

...

Maybe you know better and more.


A:

QSFT --
qsft's earnings growth for 00 is 250%

Where did you get that? even in BancBoston's (qsft's underwriter) most bullish PR:

biz.yahoo.com

only predicts a 84% revenue growth and 55% earning growth. if you believe in earning growth as the base of the stock price,
then you should see the p/e of QSFT is somewhere in the 800s and the whole software sector is only @ 60.

If you believe the fair valuation of a company's price should be set at where p/e equal to growth rate, where should be stock
be?

It should be 10% of the current price!!

L.

(Voluntary Disclosure: Position- Short; ST Rating- Strong Sell; LT Rating- Strong Sell)

L.
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