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Technology Stocks : Inter-Tel INTL Bottom Fishing
INTL 29.05+0.1%4:00 PM EST

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To: Mike Mansour who wrote (46)4/16/1997 7:25:00 PM
From: Tara Cobble   of 156
 
Mike your comment:

>>"I also went to the library and got an updated Red Chip Review for INTL. They're projecting $1.17/share for 1997 but lowered their forecast PE to 15 from about 18-20. They expect sales of $220 million and are targeting a price of $17 for 1997."<<

I hope this pans out and from what I can dig up there are some high expectations on INTL (yours above included) if the tech sector doesn't cash in or if the economy doesn't go down the tubes. Why do I hope this pans out and we get into the high teens or even 20's well I am sure you can guess.

Just some numbers to bide our time:

current PE 16
16 vs. 0.87 est. earn = 13.93
11 vs. 0.87 est. earn = 9.6
16 vs. 1.17 est. next year = 18.72

This gives an upside downside ratio of 5.5 at today's price which is very good using the scenario of the last two lines ie... the earnings are met yet the price drops into the mid nines and the PE drops, and then next years earnings are great and pull the PE back up to 16.

I think I am being conservative here, but at this point for me it is a mute point.
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