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Technology Stocks : Security Dynamics SDTI -- How much money can they make??

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To: Edward F. Horst Jr. who wrote (398)4/14/1998 11:11:00 AM
From: Bill Shafer  Read Replies (1) of 1614
 
Let's see, $4/share in cash, $5/share in VRSN equity; at stock price
of 23, you are paying $14 for SDTI. New Firstcall mean estimates are
at 82 cents for FY 98, and $1.20 FY 99, that implies 41% growth for
FY 98 and 46% for FY 99.

A stock that can grow at 40+% should trade at a premium. Assume 50X
earnings: .82 X 50= 41 share price FY 98; 1.20 X 50= 60 share price.

How much more risk can there be at this stock price? The stock has
found short-term support at 52 week low here, I am a buyer!
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