I'm just saying that the market knows when stocks make most of their earnings, but it really doesn't make a difference. If TNFI were to beat any quarter's estimates by a lot, it would rise a great deal. Sequential earnings do not matter, only year over year. And I understand that stocks are volatile, all I am saying is that I would be buying this stock until it reaches its true value, which at this point I estimate at about $31.75.
f1997 earnings are expected to be beaten by 27.17% in f1998. If you take a p/e of 27.17 and multiply it by the f1998 estimates of $1.17, you get $31.75 or thereabouts. This is the potential price of TNFI, but that does not mean that it will sit at that price throughout the year. Of course, no one was saying that.
Even if you take the p/e and multiply it by this year's estimates, you get a price of $25.00, significantly higher than today's trading value. If you're looking for a short-term winner, buy The North Face. If you want 50% within a year, buy The North Face. |
