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Technology Stocks : Extreme Networks, Inc. (EXTR)
EXTR 17.65-0.9%Nov 5 3:59 PM EST

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To: A.L. Reagan who wrote (598)6/29/2001 3:08:11 PM
From: Sully-   of 770
 
"Zachs showns next fiscal year consensus eps estimate of $.18, so, ignoring the next couple of ugly quarters, a foward P/E of a mere 155x."

OK, lets assume that EXTR's share price stays at $28 until then. Let's further assume that in each of those 4 qtr's EXTR beats estimates by 1¢. Their P/E will only be 127x.

Actually, if the economy recovers by then, EXTR would probably be fairly priced @ $28/share at that time, because they could grow earnings to 44-50¢ a share in the following year.

The problem is that EXTR is >$28/share now.

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