To all- this is my 4th post for next week's Tellab's educational week. I'm trying to prime the pump,increase readership and encourage all of you to fully participate in this string. Now if each of you makes one new informative post next week,think of the neat information and opinions, we can gain on Tellab's.
My post this time, has to do with Tellab's share price over time as viewed in current share numbers, taking into account the various stock splits that have taken place over time. First let's look at January 1 stock prices in the various years for Tellab's.
1/1/94=$5.83/share;1/1/95=$13.50/share(an increase of 131%);1/1/96=$19/share(an increase of 40%);1/1/97=$39.75/share(an increase of 109%)1/1/98=$53/share (an increase of 33%) and 5/28/98=$70.50/share (an increase of 33%,year to date or a yearly rate of 70%.
Now if you average the %increase in share price over these five time spans (with 1998 being estimated at 70%) you get a average increase in share price of 76% per year for Tellab's.
Now the management team is still very sharp and motivated, the research and development continues at a very healthy 13% of gross revenues, the cash and equivilents is at a all time high of $600,000,000, key acquisitions have taken place and will continue to do so, new developments and products, are being planned and are starting to bear fruit,long term debt remains low, about$3 mil., workers have a 1996 new stock option plan to help keep them motivated,and over $600,000,000,000 will be spent on international telecommunications equipment purchases by the year 2000, world wide and USA deregulation advances have just bearly started to take place--- SOOOOO
WHAT CAN A LOGICAL PERSON EXPECT FOR TELLAB'S STOCK PRICES OVER THE NEXT 2-4 YEARS?---
That increases in share price will go up, with a range of 33% to 131% per year,but more likely averaging 76% per year.
Now be real conservative and say you expect share prices to go up 40% per year, that still beats keeping your money in a bank with 3.5% CD's. An investment of say $10,000 at 40% growth for 5 years, BECOMES $53,782. Remember,the laws of compound growth, the biggest factor in creating exponental growth is the rate of percentage growth that takes place. Telecommunications egt. purchases are one of the growthiest areas around and it's based on solid fundamentals,though,ever changing, without a lot of hype.
Good hunting and keep your powder dry,and let's get those posts coming.
A long term bull on Tellab's, and still a aggie.
DAVE DICKERSON |
