Hi H.M,
The p/e 100 is totally misleading. The growth relative to the
p/e is what matters. EPS for RAIN are .15(a) .30 .69
for 95 96 97. The forward P/E is 30 based on 97 estimates.
The company is DOUBLING its profits with certainty. If the company
can keep doubling, 3 outlets, 6 outlets, 12 outilets, 24
outlets, the P/E will have to rise to accomodate the eps.
Of course, the question is can it double? IMHO, the answer is
definitely yes. Have any of you ever seen a restaurant with
1/2 hour wait on a weekday? I never have. Weekend yes, weekday
no. I bought PZZA at 20 with the high p/e talk all over the
place and PZZA has delivered with the growth to justify 44 per
share. It was easy. All you need is patience and all it takes
is a good week for the stock to be back at 35-40. This company
can not be valued at 500 million (50 share)? It is a lock.
Just give it time. MF EDIBLE is available on the internet,
you dont need AOL. Go to fool.web.aol.com/ind/food
to read the research on it. RAIN is head and shoulders above the
rest of food stocks. The large bid ask tells me it still is not
closely followed by mainstream investors. Volume is small, like PZZA
is. If they blow away estimates next week, like they have done
on several occasions, the future P/E goes down and stock goes
up. Surprised it was down today with market strong. Give it time.
Jim |
