SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Compaq

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Night Writer who wrote (76416)1/24/2000 5:45:00 PM
From: rupert1  Read Replies (1) of 97611
 
NW: One of the assumptions of my "predictions" of $40 by mid-year and $60 by end of January 2001 is that COMPAQ will earn $2.00 FY2000 and it could earn more if it keeps all it's promises, especially about cost-cutting. $2.00 eps and a price of $60 would give a trailing p/e of 30 on 31/1/2001. But it doesn't have to be $2.00 because the market anticpates (look at today for example). And by the time we get to October and $1.50 earnings looks safe for the FY, the market will be valuing it on forward 12 months, not the trailing 12 months.

If we assume that earnings will be only $1.50 for FY2000 then a forward p/e of 25-30 would support a valuation today
of between $37.50 and $45.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext