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Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: lindend who wrote (4263)	11/24/1999 12:58:00 AM
From: Larry Brubaker	Respond to of 19428

Linden, re: WSTL. The analyst's recommendation is a joke, IMO. Warburg Dillon Reed estimates losses in FY 2000 and FY 2001. And then projects a profit of...drum roll please...4 cents per share in FY 2002. And then gives the stock a target price of $14. So, based on the analyst's projections, the $14 target price compared to the projected FY 2002 profit of 4 cents would give the stock a 2+ year forward-looking PE of 350. Why a company with minimal revenue growth, continual losses, a lousy balance sheet and floorless financing deserves a forward-looking PE of 350 based on minimal projected profits 2 years from now is beyond me. BTW, there is a rumor on the Yahoo thread that Vinik's fund has bought almost 15% of the shares. Claims this info. comes from Bloomberg. Does anybody have access to a Bloomberg terminal to confirm?