That's a factor of 43 (1,000,000/23,000). Using that figure,
at current net margins and P/E (about 7.5% and 25 respectively,
though that's not relevant as long as they stay the same),
CPQ needs slightly over 1 trillion in gross revenues
(1,058 billion as I figure it). This is without dilution
by DEC, which is definitely a dilutive acquisition, even if
it is accretive to EPS.
Current estimate of the PC business world wide is 700 billion.
I don't know just how high this "PC business" estimate goes
into servers, and of course it's a very good bet the total
market will continue to expand rapidly.
However, there is a ceiling that didn't exist from 1992 to
present. I'm long CPQ big time (a lot more than the 1000
shares mentioned a few posts back), but I'm sure not expecting
a factor of 43 in 6 years. A factor of 4 (a trifle over 25%
per year) would be very nice, thank you very much, if I'm
lucky enough to get it, well, glad to have it!
Regards |
