PROGRAMMER'S PARADISE (PROG) Message Board

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Technology Stocks : PROGRAMMER'S PARADISE (PROG)

PROG 0.146

+6.5%

Jun 13 5:00 PM EST

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To: Zeev Hed who wrote (698)	2/15/1999 12:27:00 AM
From: Larry Brubaker	Read Replies (2) of 2383

Zeev, I think growth in the top line may be driven as much or more by the expansion of the product line as it will be driven by development of the internet as a new sales channel. I would guess that to some extent, the internet will cannablize some of their existing sales. Hopefully not too much. But any hardware sales, or books sales, or sales of any other product they did not previously carry will obviously not cannabilize existing sales. I'm banking on these new product offerings to grow the top line as much as the growing internet sales. Finally, you note there is a large difference between the company and analyst forecasts of .85 and your projections of $1.40. I would point out that I think the stock price isn't a bad deal even if all they made was the .85. That would still be a growth in earnings of about 30%. A reasonable valuation for the company at 85 cents earnings (with earnings growth of 30%) would be $20 to $25, IMO. That's why I didn't worry at all when we revisited the $13.50 range last week. Assuming the company does no worse than meet its own very conservative target, it still is a pretty good bargain at this level.

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