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Technology Stocks : Dialogic ready to soar, funds buying

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To: Larry Tomblin who wrote (491)10/20/1997 7:53:00 PM
From: Jay M. Harris   of 674
 
OK DLGC Sports fans. Establishing a new forward 12 month target of $60 per share. Yes I do expect DLGC to reach the old high 12 months out. Valuation follows: Calendar 1997

q1 q2 q3 q4 Total
Revenue(mil) $57.1 $63.2 $68.8 $76. $265
EPS $.20 $.29 $.38 $.46 $1.33

Current P/E based on Cal 1997 estimated earnings = $45/1.33=33.83X
Calendar 1998

q1 q2 q3 q4 Total
Revenue(mil) $77 $80 $86 $91. $334
EPS $.38 $.43 $.49 $.54 $1.84

Foward 12 month P/E of 33X Calendar 1998 estimated EPS of $1.84

= $60.72 12 month forward price target representing appreciation potential of 35% above prevailing levels.

Happy Investing,

Jay

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