Dupont Photomasks (DPMI) Message Board

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Technology Stocks : Dupont Photomasks (DPMI)

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To: John Bloxom who wrote (120)	2/14/1998 5:41:00 PM
From: jeffbas	Read Replies (2) of 955

I bought at 26 and am very happy I did so. But this is a company where the publicly stated growth rate of the high end products is in the 40% range. When you sweep this in with the much lower growth end of the business, a 20-25% growth rate in earnings is probably reasonable, long term. In the immediate future we probably have flat to declining earnings at a $2.00 annual run rate. I think $40 or so is fair value and not a "bargain". I think $50 would be overpriced. I also think the stock has downside risk to $30, if we get another tech stock correction and earnings continue mediocre. I don't get very enthusiastic over stocks that have 25% to go to being overpriced, particularly ones that have had a sudden large move up, contributed to by short covering; and have equal short term upside potential and downside risk. What am I missing?

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