S3 (A LONGER TERM PERSPECTIVE) Message Board

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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE)

SIII 0.0001000

0.0%

May 12 5:00 PM EST

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To: James T. who wrote (7325)	11/4/1997 10:08:00 PM
From: Sep K.	Read Replies (1) of 14577

James, think about it. The investors consider a P/E of 18 (when it was $8 3/4) as a fair for this stock with its current end of the year EPS; this year end EPS was expected to be .48 (sum of last three and next quarter) by FIRST CALL. Since the .48 is going to be changed to .29, then the P/E at $7 is almost 25. Of course the stock will drift down to a P/E that is considered as appropriate, which was 18, but will probably become 10. SO, THIS MEANS THAT FOR A P/E OF 10 THE STOCK WILL NEED TO BE AT ABOUT $3. So expect the stock price to drift down towards $3.

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