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Technology Stocks : VIAS VIASOFT & THE Y2K PROBLEM

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To: michael tantleff who wrote (1477)7/8/1998 5:17:00 PM
From: TEDennis  Read Replies (2) of 2067
 
Let's play "what if" ...

Last year's earnings were $0.49.

Assuming a modest 25% growth (certainly doable for a Y2K company), this year's should be in the neighborhood of $0.61.

Apply a PE of 30 to that, and you get 18 3/8.

So, "what if" one buys a bunch of shares at the current level of 15 (rounded up). It would seem one could make over 3 bucks a share short term. That's 20 percent. Not bad.

Now, "what if" that 25% growth turns out to be 50%? The earnings would be $0.73. With a PE of 30, that makes the stock price $22.

Hmmmm ...

TED (Long, strong, and very very hopeful)
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