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Technology Stocks : SDL, Inc. [Nasdaq: SDLI]

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To: Wyätt Gwyön who wrote (1635)6/9/2000 10:22:00 AM
From: The Ox  Read Replies (1) of 3951
 
I appreciate your response and basically agree with your position on the 'relatively' low estimates. This is why I added the section of my post which stated: Double either multiple factor and we get fair values of $220/share and $136/share.

If we attempt to factor in the conservative nature of both analysts and management- by doubling given guidance - we still end up with what appears to be a company trading above fair value based on revenues and earnings over 18 months away! It's this discrepancy that disturbs me.

Before the NASDAQ market topped in March, we kept seeing analysts come out with massive valuation calls based on extremely high price to sales ratios. I'm simply adding my concerns, and speculation, about the current price targets. I'm not trying to discourage anyone who owns this very fine company.

Just my opinion,
Michael
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