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Technology Stocks : Genesis Microchip (GNSS)
GNSS 2.330+3.6%3:59 PM EST

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To: geoffrey Wren who wrote (880)7/13/2001 12:16:44 PM
From: The Ox  Read Replies (1) of 1277
 
Hi gw,
I wouldn't say that a PE of 41 is pricey if GNSS can produce the eps estimated by the analyst. Over the last 4 years, GNSS hasn't had a total yearly eps over 40 cents, so if they can create almost a dollar in earnings in FY03, they will have shown a tremendous turn around. I understand your concern about valuation at this point in time but IF, and it's a big if, they can produce up to these expectations, they will have validated their business model, IMO.
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