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Technology Stocks : ESLTF (Elbit Systems Ltd) an Israelian arms manufacturer

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To: Phil Didaskalou who wrote (24)12/9/1997 5:22:00 PM
From: Use Solar NRG  Read Replies (1) of 45
 
As I mentioned earlier, there are certain aspects of Czeschin's adv. flyer that I don't understand. He also referred (in August mailing) to a growth rate of 33% per year; now Solomon predicts 13.5%. As to share price increases, he stated "...a stock you can buy at under $20 today could be worth somewhere between $170 and $320 just a few years down the road." Thus, I guess he divided 170 by 20, or approx. 8, called that 800%.

He arrived at these projected stock prices by comparing P/E ratios of ESLTF with those of companies in S&P's Defense Electronics Index, which - he says - range from 35 to 81. So, figuring that ESLTF is as good (or better, as he refers to the others as "inferior competitors"), their present P/E (12 in August) will rise up to something close to their competitors'.

Sunny
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