IMRS racking up y2k contracts. Message Board

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Technology Stocks : IMRS racking up y2k contracts.

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To: paul e thomas who wrote (1943)	12/28/1997 12:27:00 PM
From: paul e thomas	Read Replies (1) of 3162

WHEN TO SELL IMRS The Friday IBD tables show an PE of 94 for IMRS.This lofty number raised a question in my mind at what price might Institutional investors consider the Stock overpriced. Morningstar states the average 5 year eanings growth rate is 43%. First call says one analyst with a 35% and another with 50%. This is a very wide spread and implies one is forecasting earnings 5 years out 70% higher than the other is forecasting.While the current PE is well below the 220% growth in 97 over 96 earnings it is very high compared to the norm that many institutions use of a 1.0X earnings growth on a forward looking basis. First call is forecasting .70$ per share in 1998. I believe 1999 earnings could be 1.20$.IF I assign a PE of 43% then a price above 51.50$ anytime in 1998 would make me nervous about Institutions bailing out. IF the analysts only forecast 1$ in 1999 earnings. Then a price above 43$ at any time soon might trigger a sell-off.The analysts will begin publishing 1999 earnings estimates sometime in the next 3 months for IMRS.

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