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Technology Stocks : Pixar Animation -- Ignore unavailable to you. Want to Upgrade?

To: HECTOR RUBERT who wrote (2541)	7/1/1999 4:21:00 PM
From: Nick DeVito II	Read Replies (1) \| Respond to of 3261

HECTOR YOU ARE MY HERO! I HAVE LOVED THIS STOCK SINCE I BOUGHT @ 38. WILL REALLY LOVE IT AT 60. YOU THE MAN. ND2

To: HECTOR RUBERT who wrote (2541)	7/6/1999 2:26:00 AM
From: Adam Nash	Read Replies (1) \| Respond to of 3261

Pixar cannot maintain the abnormal growth they will see in earnings over the next 12-18 months long term, so they don't deserve quite the P/E you are describing. Don't get me wrong, I am long Pixar, and have been for a couple years. However, I prefer to use the discount method for valuing Pixar. I tend to see Pixar as having approx. $2.50 in earnings within 3 years, and I use a 30x P/E on that and then discount back to the present. That method has been giving me mid-40s for Pixar for 1999, assuming a 25% discount rate to my cash flow projections. That assumes Pixar's films (TSII and Monsters) make approx $120M domestic box office ea.) - Adam