Mike- I believe the goal to triple gross income to $6 billion by the year 2003 for the following reasons.
1. The mgt. team is very conservative and Pres. Mike is honest.
2.They have a good idea of where the new forthcoming products will put them in terms of long term sales.
3. they are going after cable,Titan,Martis,hybrid fiber-optic products,internet connected I.P. products, in a total global setting ( China,far East,Latin Amer.,Europe,etc.)
4. They have been talking about this new goal for over a year.I have reported it over three conf. calls ago.
5.Global spending for telecomm.eqt. upgrades,info. age upgrades,will do nothing but continue to increase, especially as deregulation starts to kick in around the world and the far East recovers ( it's just starting in Europe)
6.Their mgt team is well experienced, with over 200 years experience among them.
I fully expect that net earnings per share will grow at a rate of 40-62% per year. Now if you asssign a range of PE values to them, from 25 to 40, draw your own conclusions as to future stock prices.
NET EARNINGS PER SHARE, IN COMPANIES NOT INCLUDED IN INTERNET 'HYPE', IS THE MAIN DRIVER OF STOCK PRICES.
I look for their growth to continue in this fashion for the next 5-8 years, and then a future analysis will be needed.
By that time, I probably won't be as close to them as I will be retired and spending more time with grandkids,fishing and traveling.
By the way our recent trip, courtesy of Tellab's, to Maui was great.
Good Hunting
DAVE DICKERSON |
