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Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel?

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To: Rob C. who wrote (375)12/2/1998 9:20:00 AM
From: Jody Ritchie  Read Replies (1) of 20297
 
>>>> YHOO's mean estimate for fiscal 1999 is .62 cents. Stock price of $206 or a forward p/e of 322. CKFR's mean estimate for fiscal 1999 is .12 cents. Stock price of $17 5/8's or a forward p/e of 146. If we use YHOO's growth factor and internet potential, which CKFR should grow along with, CKFR should be around $36.00 right now.

Taking the above into consideration, wouldn't you say we are somewhat undervalued???<<<<

This is why I'm so wishy-washy about getting into CKFR. Sure, it's undervalued compared to YHOO, AMZN, EBAY, and all the other e-tailers. However, those stocks are grossly overvalued. I have a feeling the prices have been pumped up based on potential and if that potential never shows up...look out below!

I'm not comfortable with a PE of 146. I usually don't like it when the PE gets over 50. However, the .12 is for next June. Isn't the estimate for FY2000 (Jun 2000) .51?

This company seems to have a good product and could potentially blow estimates away. But comparing it to YHOO is just not right.

Back to researching CKFR...

Thanks.

Jody
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