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Technology Stocks : LSI Corporation

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To: Tony Viola who wrote (22078)5/6/2000 9:39:00 AM
From: John F. Dowd  Read Replies (1) of 25814
 
Dear Tony: You guys neglect the power of compounding. To triple your sales in 10 years all it takes is 13% compounded growth per year for ten years. I am surprised at all you scientific numbers men being so naive about compounding. A 30% per year increase would result in a multiple of 10.6 for 10 years. How can you guys claim to be investors with such a poor grasp of future values of cash flows? The formula is Multiple =(1+r)^( n-1) where the rate is r as a decimal and the n is the number of years. JFD
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