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Technology Stocks : Insignia Solutions (INSG)
INSG 10.89-1.1%Jan 30 9:30 AM EST

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To: BILL G. who wrote (1596)3/14/2001 7:57:38 AM
From: Peter Church  Read Replies (1) of 1606
 
From Jefferies "We don't see this as a quarter-by-quarter revenue or EPS story. This is a channel partner story. As INSG partners with key channel players it will get a disproportionate share of design wins and therefore revenue from them.

We think the stock could be worth $13 based on a discounted cash flow analysis using a 10% terminal growth rate and a discount rate of 18%. Our $13 price target is 7.9x our 02 revenue estimate. "

Can anyone help me understand the last paragraph. What is a terminal growth rate? Is an 18% discount rate standard?

Message 15495356

Thanks---Peter
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