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Non-Tech : LABOR READY (LWR) THE NEXT MANPOWER.

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To: Spunky Beaver who wrote (235)8/24/1998 8:19:00 PM
From: Khris Vogel  Read Replies (1) of 455
 
>>Let's do some math here. Manpower (MAN) has a $1.83B market cap, $1.91 EPS, an $.18 dividend and a P/E ratio of 12.11. LBOR has a $603 million market cap, $.35 EPS, no dividend, and a P/E ratio of 66.25.

If you assume that LBOR revenue growth is twice that of MAN then LBOR shares are worth; (.35*2)/1.91 * $21.75 = $8.46.<<

Forget the math. Let's do the terminology here. Revenue means sales. From sales, you subtract all the co.'s expenses, and the remainder is called net income, or earnings. You divide the net income by # of shares, and that's called earnings per share.

So you say, let's assume that revenue growth is twice of MAN, then you use that multiplier against EPS? You don't happen to work for the IRS, do you? You sound like one of the rocket scientists that devised the 1997 Sch. D.

Besides the faulty logic applied above, you also miss a very significant point - LBOR is growing revenue AND earnings at a rate that far surpasses twice that of MAN.

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