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Biotech / Medical : Sepracor-Looks very promising

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To: David Howe who wrote (1800)2/20/1999 12:59:00 PM
From: wolfdog2  Read Replies (1) of 10280
 
David, suppose we use a more conservative p/e for your earnings model, let's see where that gets us.

$14 x 40 = $560. That looks pretty good. But wait. These aren't next year's earnings or even the year after that. Perhaps these targets will be reached in 2003. Maybe. Let's say they are. Then we need to determine the discounted value of $560. If you discount it by 40% per year, you get a current value of $72 per share.

Now you can play around with these numbers all you want, but the fact of the matter is that the stock is ahead of itself. By any sane earnings model it ain't cheap, even after yesterday's decline.
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