Mike- My goal for end of year for Tellab's is $110 or up 15% from current levels ( $2.55 net per share times PE of 42+ =$107-$110)
Top side target for me by end of year is $130/share ( $2.60 net/share times PE of 50). This top side would occur, if analysts get exited about Tellab's longer term future ( namely 3-5 years of increased growth with new family of fiber-optic-hybrid products). That would be a +36% increase from current levels. I'm looking for good earnings outcomes and suprises in the forthcoming 1/4s). Not too bad for a good share of ones portfolio. For me, I've got 38% in Tellab's,58% in CMGI, plus some misc. stocks like KIDE ,etc.
I expect Tellab's to have a 2:1 STOCK SPLIT WITHIN THE NEXT 3 MONTHS.
Now you may want to diversify, eg.Internet mutual fund (WWWFX) had a 308% gain in 1998, CMGI ( a venure funding co. that has a 2.6 beta and a hatcher of internet IPO's,it has more than 42 young companies under development,currently) had a gain +640% in 1998, etc. Working with call options,or long term leaps or margin accts. can leverage your gains on stock that you have done your D.D. and those that you feel comfortable with. Some accts don't allow this kind of leverage.
Eg. 8 days ago I bought two April "99 calls on CMGI at 20 5/8 premium,with stock at $125 and sold these calls for 77 1/2 6 days ago for a gain of $11,110 on a investment of $4300,a 266% return. Next month the Mrs. and I will be in Maui and I plan to do some deep sea fishing.
These are just one man's opinions, and each person needs to do your homework,and make up your own mind. I'm in stocks 100%,age 59, and with a minimum of effort will retire next year with $1 million+,and I plan to keep it fully invested in stocks ( with the possible exemption of 1-3 months out for y2k scares in late 3rd or 4th 1/4,1999) and not in CD's @ 5%.Let me know what you think, and we can compare notes. The main difference now is with the internet, is that the average man has plenty of information that's needed to get a good return.
Good Hunting
DAVE DICKERSON |
