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Gold/Mining/Energy : Bombardier, maker of planes and trains and other things -- Ignore unavailable to you. Want to Upgrade?

To: little big man who wrote (632)	8/29/1999 12:05:00 PM
From: Jay Anderson	Respond to of 1177

I believe that it is earnings per share that you are referring to not revenues. It is expected that the company will earn somewhere around a dollar per share for the year ended January 1st, 2000. As it is now getting late in the year the stock is starting to be priced in regards to next years earnings. Since January 1999 the stock price has only moved from $23 to $24. Considering these facts I would suggest that the stock is at least fairly valued if not undervalued at this time. JMHO Jay

To: little big man who wrote (632)	8/29/1999 2:51:00 PM
From: csm	Respond to of 1177

Last year BBD earned 4/3 as much in the 2nd half of the year as they did in the first. That would put this year's earnings around $1.03, which they said they are comfortable with. At $24, that is a PE of 24 for a stock whose growth rate is above 30%. Some people, like Peter Lynch, believe that when you can pay less than the growth rate for a stock it is on sale. At 30x this year's earnings, BBD would be worth $30. Next year... add 30% i.e. $39. I like paying $16-20 (what I paid) or even $24 this year for $39 next year. Of course, it's not exactly guaranteed. Don't forget, they are increasing production capacity to fill back orders. Good investing! Stuart.

To: little big man who wrote (632)	8/30/1999 1:43:00 AM
From: Hassan Lakhani	Respond to of 1177

Message #632 from little big man at Aug 29 1999 10:06AM If 6 month's revenue is .44$ per share, one year's revenue should be around .88$. At 24.00$ that is still 27 times rev. per share. Seem quite high to me. Just to follow up the previous couple of posts. Bombardier's EPS during the first six months of fiscal 2000 were .44, versus .33 for the first six months of fiscal 1999. This represents year-over-year growth of 33.3%. I think they earned about $.75 last year, so if they can maintain the same growth rate for the remainder of this fiscal year, they should earn exactly $1.00 per share. Given this growth rate, I think a PE of 27.5 is quite reasonable, implying a six month target of about $27.50. Based upon this calculation, I still think Bombardier represents good value. Hassan