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Technology Stocks : Redback Networks, Inc. (RBAK) -- Ignore unavailable to you. Want to Upgrade?


To: William F. Wager, Jr. who wrote (252)7/15/1999 12:25:00 PM
From: Tom Hua  Read Replies (1) | Respond to of 1956
 
William, the runup is caused almost entirely by short squeeze. Who in the right mind would buy this stock at 175? It's losing money this year. Analysts expect it to earn 0.24 next year and project earnings growth rate of 48% over the next 5 years. Using a PE of 50, this requires RBAK to earn $3.5/share. At a 48% growth rate, that's gonna take 7 years to reach that level. Amazing!

Regards,

Tom