100,000,000 PCs are going to be sold in the year 2000. Let's say this remains flat. At
$1000 per that's $100,000,000,000. Software, service, services, and accessories is
another $100,000,000,000. Throw in digital cameras, and you get another
1,000,000,000. (low estimate)
Total market of 201,000,000,000.
It is estimated that E-Commerce will represent 10-25% by 2002.
So, we have a market of 20,100,000,000 to 50,250,000,000.
Can COOL get a 10-15% market share? Yes.
So, we have a $2,100,000,000 to $3,150,000,000(10%)to $3,015,000,000 to
$7,537,500,000 (15%)revenue potential.
Let's go low, margins of 10%. That's $210,000,000 to $753,700,000 in gross margin.
Can COOL obtain these results with expenses of $150,000,000?
Yes.
Operating Income of $60,000,000 to $603,700,000.
35% taxes
EPS OF $1.75 TO $17.44 PER SHARE.
Pick a PE. Say 20?
Stock price of $35 to $348.80
And what happens if margins are improved? WOW!
Good Trading, LF |
