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Technology Stocks : Arris International PLC (ARRS)
ARRS 31.660.0%Apr 4 5:00 PM EST

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From: Arthur Tang6/14/2013 6:33:25 AM
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Many stock analysts publish predictions of earnings per share and stock price so many times of earnings.

Stock price is actually compared to interest rate of 5%, so it is 20 times its earnings for many years. Today interest rates are very low as set by federal reserve banks.

Many companies have steady market and earnings even pay dividends. Their stock price is easy to analyze.

In growth companies such as ARRS, stock price is generally based on projected earnings and top line performance. 9 times earnings is a bargain, because when the market saturates ARRS may pay dividends. 5% earnings or dividends, will be 20 time earnings.

Today, ARRS has a projected earning of over $2.00 and top line performance of 5 times increase. Stock price could be 40-100 times earnings projection. As dollar volume increase R&D expenses are small percentage of sales. Earnings(too much for company plans) may become dividends.

If top line performance can be achieved by projection, this stock is a strong buy. Because top line performance can drive efficiency in production and achieve much higher profits. Dividends shift income taxes to stockholders. Paying off low interest loans is after income tax(became high interest loans).
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