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Non-Tech : Lone Star Steakhouse (STAR)

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To: David Semoreson who wrote (65)8/25/1997 5:06:00 PM
From: David M. Selman   of 175
 
I agree that there probably won't be any bounce in the near term.
However average PE for this industry is about 20. STAR is trading
at trailing PE of about 10. First Call estimate for Sept. quarter is $.34
and $.50 for Dec. quarter. Estimate for FY 1997 is $1.74 (low is $1.64, high is $1.80). Estimate for FY 1998 is $2.00 (low is $1.60,
high is $2.22). An upside earnings surprise seems quite possible to me and that will definitely give the stock a big boost.

happy trading
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