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Technology Stocks : TLAB info?

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To: A. Edwards who wrote (4872)1/26/1999 1:08:00 AM
From: michael r potter  Read Replies (1) of 7342
 
Where might TLAB trade in two years assuming a less conservative model than was used in post # 4772 [25% engs growth]. Using 35% for engs growth, brings '01 engs. in at around $4.55 per sh. Because of the reasons cited in #4772 and #4781, TLAB would trade at a PE substantially above its growth rate. Using 50 is not so aggressive when compared with other institutional large cap. co's with very high growth rates. Should that be the case, TLAB could be trading around $227. If the market gives it a more CISCO like multiple in a yearly fit of enthusiasm, it could trade at a 60 multiple and go for $273. Of course the reverse is true, and if the market was throwing a tantrum, it might trade at a low of 30 times engs. I doubt that it will again trade at the give-away multiple of last fall unless the company blows it and happily, no sign of that whatsoever. Still long [through CCSC since '94]. TLAB, glad I met ya. Congratulations to current longs. Mike
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