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Technology Stocks : TLAB info?

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To: John Carragher who wrote (2794)7/26/1998 12:06:00 AM
From: Vted  Read Replies (3) of 7342
 
John...I'm trying to leave mutual fund investing so I am trying to understand what to put in a portfolio. I saw Chris' request for an idea on adding a telecommunications hardware co to his. I began to ask how he new he needed one.

Now, I'm involved in trying to understand where a quality company like tlab is headed for price next year. If the $84 price is at a PE of 49, and projected earnings are to be $2.29 when this year's earnings are $1.80, it seems the growth rate is 27%. Now, 49-27=22. Is there a 22% surprise factor that I am not seeing?...Vted
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