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Technology Stocks : Network Appliance
NTAP 106.63-0.2%12:34 PM EST

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To: SecularBull who wrote (8589)6/27/2001 8:01:59 PM
From: Jacob Snyder  Read Replies (3) of 10934
 
Assuming they make 0.20 in calendar year 2001, they would have to double earnings every year, to reach EPS of 3.20 in 2005. If they do that, they probably deserve a PE >> 30. I doubt that's possible. We will probably get a rebound in earnings, when IT spending comes back. But that might not happen till 2H02, and it's a one-shot deal. After that, a growth rate of 30% and multiple of 30 is possible, if everything good that can happen does happen.
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