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Biotech / Medical : ABR Information Services (ABRX)

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To: Jim Mac who wrote (109)3/13/1998 7:48:00 PM
From: Russ Parker  Read Replies (1) of 156
 
True, growth has decelerated. But that doesn't neccesarily mean the stock has to tank. Not many companies maintain triple digit growth. If they maintain 30-40% growth over the next 3 to five years, then it's PE is not out of line with alot of other software/service companies. Saying the stock will possibly go down to 10 makes it sound like this is a company with severe problems. I do think the valuation is a little rich based on earnings estimates. On the positive side, they have been beating estimates. I don't think it's the greatest stock for short term traders. My broker specializes in companies that have long term earnings growth of 20% or more. I've seen stocks stay dormant for a year, then all of the sudden they pick up steam. The key is will they maintain 30% plus growth for the next 3 to five years. The party is not over just because they are not growing at triple digit rates. I don't think the Ascend comparison was good either.
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