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Technology Stocks : Juniper Networks - JNPR

JNPR 39.95

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Jul 2 5:00 PM EST

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To: Charlie Schultz who wrote (740)	8/19/1999 5:52:00 PM
From: Bridge Player	Read Replies (2) of 3350

From Wall St. Journal article 8/19/99 << But along with these red-hot valuations on equipment and software stocks have come red flags. Says Kenneth Heebner, portfolio manager at Capital Growth Management: "There are two things investors are ignoring here: There is no way they can grow into this valuation. And there is going to be competition." That's particularly so, he says, with access to capital so freely available from venture capitalists and the public markets. Even if Juniper were (by some miracle) able to begin earning $30 million this year, for instance, it still would trade at 300 times earnings at its current valuation. "Work the arithmetic," Mr. Heebner says. "There is no way the earnings can get high enough to support this valuation." >> It it pretty hard to interpret these comments as anything other than that Juniper is enormously overvalued. On current shares outstanding, I will predict that Juniper Networks will trade under $75 per share within the next 6-9 months. This is one of the biggest bubbles in the whole tech sector. I just wish listed options were available on it. BP

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