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Technology Stocks : Cats Software (CATX) Any holders
CATX 2.730+3.4%Oct 31 9:30 AM EST

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To: art hebert who wrote (56)4/20/1997 2:01:00 AM
From: Blake Cmajdalka   of 60
 
INFN is a good company but I am not buying it.
The golden rule of Wall street is that you do not buy a company at a greater PE than it's projected growth rate for the future. Using 13.5 and 96 EPS of .28 you get a Trailing PE of 48 (high). EPS growth rate of 47% occurred between 95 (.19 EPS) and 96 (.28 EPS). Company is fully valued at 13.5 if company will continue to have EPS growth of 50%. Usually a stock is a good deal if you can get it at one half of the growth rate. That would be about $7. INFN will see $7 if it ever dissapoints wall street, but if it does not it may go higher. What do employees of INFN think of their competitor CATX. I would be interested to know. By the way INFN has a market cap of 300 million and CATX has a market value of 33 million. INFN could easily by CATX if they had something you wanted. Good luck
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