Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Helix Technology, a cold play on semiconductor equipment -- Ignore unavailable to you. Want to Upgrade?

To: John Finley who wrote (738)	12/17/1999 3:26:00 PM
From: Steven Dopp	Read Replies (1) \| Respond to of 1227

Thanks! I only wish the other stocks in my club's portfolio had done half as well as HELX! I think the main reason my club has held on is that we recognized the crash of Oct 98 as a temporary phenomenon, plus we didn't want to sell at a loss. Back then, the company still looked pretty solid, given their cutting of the dividend and their ability to rapidly cut costs by closing leased factories. The club recognizes that the p/e ratio is pretty meaningless given last year's earnings losses. Still, going forward we see a p/e of 66 based on next year's earnings projections, which seems pretty stiff compared to some alternative, technology-type investments. While the club thinks the price can go higher, it doesn't think it can go much higher. Personally, I think it can go to $75 next year. I base this on an SSG I cooked up where I assumed that 1998 "didn't happen" and plugged in revenue and eps numbers based on 20% growth rates. Probably not a valid approach but I was looking for some way to factor out the 1998 losses in my analysis. While I think it may go as high as $55, I personally would likely vote to sell once it reached the $54-55 level.