NT/Bay Merger:
Here is a brief approximate look at the numbers:
NT forecast '99 EPS = US $2.35
(~525,000,000 shares outstanding)
BAY forecast '99 EPS = US $1.00
(~135,000,000 equivalent NT shares outstanding)
Forecast '99 EPS of combined company (weighted average):
(525,000,000 * 2.35) + (135,000,000 * 1.00)
-------------------------------------------
(525,000,000 + 135,000,000)
= US $2.07
Valuation:
At PE = 20 ==> Share Price = US $41.50
(IMO, this is very unlikely)
At PE = 30 ==> Share Price = US $62.10
(IMO, this is a healthy safe medium)
At PE = 40 ==> Share Price = US $82.80
(IMO, any large contracts/onslaught of positive news could
bring the stock to this level)
At PE = 50 ==> Share Price = US $103.50
(IMO, if stock wins friends on Wall Street and momentum turns
it into the talk of the town).
Disclaimer:
This is my US $0.02, please due your own DD.
Cheers!!! |
