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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: TREND1 who wrote (11078)12/6/2001 11:17:27 AM
From: Justa Werkenstiff  Read Replies (1) of 99280
 
Larry: Re: "The earnings part of the equation is based upon the 12 months ahead operating earning estimates
produced by I/B/E/S of $55 per share."

For starters, that estimate is a joke now. It is dated. Earnings estimates are coming downtown. A fair estimate for next year's operating earnings is in the $46 range. And the estimates keep getting ratcheted down as they will this month and next quarter. This is called multiple compression.

Hope that helps <g>.
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