C-Cube Message Board - Msg: 11739996

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Technology Stocks : C-Cube

CUBE 37.06

-2.2%

12:12 PM EST

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To: Black-Scholes who wrote (46941)	10/28/1999 7:22:00 PM
From: Trieu	Read Replies (2) of 50808

600 million seems low to me for the value of the semiconductor business. By the way, I though I heard Umesh say semiconductors accounted for 38% of operating expenses, not 38% operating margin. Was this right? Anyway, I'm expecting the semiconductor division to earn close to 50 million next year with growth of 30%+ (conservatively). That gives us a PE of 12 based on a 600 million market value. More realistically, I would expect a PE of at least 25-30. Based on this metric, I would value semiconductors between 1.25 to 1.5 billion or between $27 to $33 per share. This is a conservative valuation also. I'm not sure how Ms. Klauer gets 600 million.

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