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Technology Stocks : XIRCOM (XIRC) 5/16/95 @ 16-1/8

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To: Kevin G who wrote (917)12/3/1998 12:50:00 PM
From: GS_Wall Street  Read Replies (1) of 1096
 
Your little money central center is flawed. If you believe their estimate for 99 and 00 that shows a Earnings growth rate of 6%. That is not worth current P/E of $39. Even in todays market of high multiplies I would pay no more than 20 something for 1999 earnings.
20 x 1.49 = 29.8
25 x 1.49 = 37.25

Therefore this stock is worth between 30 and 37 in the year 2000, in present dollars it is worth more like $24 to $30. At best this stock is a hold, and if the bussiness conditions remain steady it becomes a buy in the mid twenties.
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