SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : US Robotics (USRX)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Paul R. Drahota who wrote (8)7/26/1996 5:10:00 PM
From: David Rubin   of 51
 
Well, after the ridiculous sell-off, we're now looking at a stock price of 52 3/4 which puts the PE at about 26.

Don't lose sleep over this one ... the selling was completely unprofessional and panic-driven (see the article in today's on-line Wall Street Journal).

The company has grown at least 20% per quarter consistently. They grew over 100% for the year. This is phenomenal. They beat Wall Street expectations this quarter. They will continue to grow. However, any fast growing company cannot expect to grow at the same rate forever, it is simply impossible. A US Robotics official decided to point out this fact in the earnings statement, and many investors decided to ignore the financials and sell out of fear.

Sure, US Robotics growth will certainly slow down, but a PE of 26 is absurd. Once all of the panic-driven idiots are out of the stock you'll see it slowly climb back to where it belongs.

It will be much tougher to get to 120 now, but I'm willing to bet that within 2 months USRX will be back in the high 70's or low 80's. In the longer term, I equate USRX to where Cisco was several years ago. In 1991 I bought Cisco at a split-adjusted price of $5 and in 4 years it returned 1000%. Even when Cisco's growth slowed, the smart investors still realized that the company is solid. Now it is one of the "blue chips" on the NASDAQ. USRX is headed there as well ... but some upset stomachs will have to be endured along the way...
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News