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Gold/Mining/Energy : BCE Blue chip growth stock -- Ignore unavailable to you. Want to Upgrade?


To: SBHX who wrote (185)2/18/2000 12:50:00 AM
From: Jim Somerville  Read Replies (1) | Respond to of 275
 
So what you're saying is that for BCE to maintain a P/E of 20 ex-NT, then we would be looking at something like a $30 US appreciation on where we are now. I guess this is the "shortfall" that Monty has been complaining about in the market valuation of BCE stock. So BCE currently has about a 25% discount built into the current price. 30/120

As an investor, this looks like "low hanging fruit" to me.

-Jim



To: SBHX who wrote (185)2/18/2000 7:56:00 AM
From: Sili Investor  Read Replies (1) | Respond to of 275
 
You cannot use a $.15 loss for Nortel in your calculations. That includes a one-time write-down of the Bay Networks acquisition. The better number to use is the $.55 per share profit before the writedown.

Using that number, you get a P/E of about 25 if you consider a $45 per share price (Cdn). Still low from where I sit given the average P/E of the DOW and the outrageous P/Es of the Nasdaq.