I think the 55 target came from a Price to Sales ratio and one other thing....PS ratios come way down in slow chip times was the jist of it,whatever...but the nail in the coffin IMO, has been their free spending with shares. NO matter what company, digesting all of those could prove difficult to say the least. IF just one of them deals blows up (no product, miss managed, no fit, ego clashes, etc) you're talking major charges and a hit to earnings, which means EPS in the crapper. Never mind that they over paid for most of those deals also.....some I'm sure out of desperation.(see: 1000 engineers and cant build an mpeg encoder, so they spend 700M for a company that has one)
Why don't you think it can goto 55 or below?
The econ is not the crux of my story,, but it has now lowered my bar 20 more points :-)
You should really go read my last MANY months post on this thread. You'll see where I'm coming from. |
