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Technology Stocks : Vitesse Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: GP Kavanaugh who wrote (2649)	6/29/1999 11:06:00 AM
From: Bulldozer	Read Replies (1) \| Respond to of 4710

Clark raised the targets on his whole Comm IC universe today. BD

To: GP Kavanaugh who wrote (2649)	6/30/1999 5:30:00 PM
From: The Ox	Read Replies (4) \| Respond to of 4710

Does anyone have a problem with this formula for valuation: Our $80 price target for Vitesse is based on 45x the implicit 2001 earnings power of $1.70-1.90. It seems interesting that a company should be valued that far forward in today's market place. I've been an avid VTSS bull for a long time but I've always thought that most of the time the valuation was fairly reasonable. Saying the stock should be valued on the perception of earnings power 30 months from now seems to be a bit steep. Am I the only one concerned by this method of projecting a price target?