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Biotech / Medical : QGLY - Tech Talk, Innuendo, & Anything Goes

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To: Jonathan Bulkeley who wrote (9)10/5/1997 6:33:00 PM
From: Louis Cornell   of 53
 
Jonathan, current earnings consensus for 1998 is $1.52. See
ultra.zacks.com

I think 20-25X forward earnings is very conservative given the high rate of growth. When, not if, the market factors a more realistic 40-45X earnings it will get very interesting - 40X 1998 earnings gives you $60 a share.

I think $30 by November timeframe is do-able, but I'm not psychic!

Based on consensus growth from 1997 to 98, you get an EGR of 30%
which means if you assume a PEG of 1 you get a $45 share price. No matter how you calculate it, we're way undervalued here.

regards,
Louis
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