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To: $Mogul who wrote (3332)11/28/1999 10:04:00 PM
From: w0z  Read Replies (1) | Respond to of 4722
 
No I wasn't kidding. You need to look carefully at the revenue growth history and decide if it is worth 60 times earnings. I haven't seen a copy of the IPO Prospectus yet but I worked at "A" for 27 years and know a little about it from my own experience.

I just located the Prospectus (http://investor.agilent.com/visitors/edgar-get.cfm?document=1090872/0001012870-99-004313&CompanyID=AGI&header=B) and read the following:
                              1994   1995   1996   1997   1998   1998   1999
Net revenue.................. $5,546 $6,595 $7,379 $7,785 $7,952 $5,965 $5,883
Earnings from operations..... 521 841 875 870 442 489 536


A is in a very cyclical business which happens to be at a peak now...be careful extrapolating their latest quarterly growth into a long-term revenue stream.