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Technology Stocks : Advanced Fibre (AFCI) ** IPO

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To: dougjn who wrote (468)5/18/1998 12:24:00 PM
From: Wizard  Read Replies (1) of 3299
 
AFCI still looks undervalued to me. Consensus EPS is $.76 this year but that looks low. There is a good chance they do $.85 and then grow another 50%+ in 1999. I think $1.30 is the probability for 1999. That makes the 1999 P/E about 29.5x which looks unsustainably low. Maybe it goes to 25x first but its just a matter of time before AFCI sees $50+, IMO.

TLAB trades at about 30x consensus 1999. AFCI is growing faster and deserves a premium multiple. Anybody want to disagree??
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