EATON'S IPO (JUNE 2ND) Message Board

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Gold/Mining/Energy : EATON'S IPO (JUNE 2ND)

ETN 383.12

-1.2%

Oct 30 3:59 PM EDT

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To: pavlov 1 who wrote (2)	6/8/1998 10:45:00 AM
From: Bridge Paul	Read Replies (1) of 68

Yes looks GOOD. Friday's news quoted Eatons forecasting eps $3.25,but that does not seem to compute. Earnings forecast have been revised up at $58M from $52M. Divide that by 23M shares. You get $2.50 eps. Perhaps they did it by some kind of weighted average number of shares during the year ending Dec 31, 1998. In any event, price to earning multiples for other clothing department stores (Hudsons Bay, KMart, Walmart, May Company, Reitmans, etc) range between 14 and 30+. Even with the recent past financial difficulties that Eatons is emerging out of, the current multiple of 6x is too low. A reasonable multiple IMHO of 8-10 would put ETN's valuation at $20-$25. I am saying all this from my own thinking. Have had no benefit of a investment adviser firm's assessment so far. Has anybody else heard of a review or two from the street? Thx

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