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Technology Stocks : VISIO Corp (VSIO): Big ISO 9000 Play

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To: Glenn Norman who wrote (111)7/24/1998 6:52:00 PM
From: Adam Nash  Read Replies (1) of 522
 
Hi Norman,

Well, that's the funny thing. You say that anything above a P/E of 35-40 is too high. But, in truth, this stock now trades at about a PE of 30!

Just doing run-rate earnings (ie, take the last quarter x 4) you get $1.24 a share. 30x is already 37.2. 35x is 43.4. 40x is 49.6.

So, in my view, anything between 43 and 50 is fair game for now, below is cheap (acquire more shares).

I'm just curious why the drop on the strong earnings announcement. I'm just surprised - I think Visio is on pace to be bigger than Adobe. They are already closing on the $200M mark for revenue run-rate.
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