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Technology Stocks : SDL, Inc. [Nasdaq: SDLI] -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (1639)	6/9/2000 10:40:00 AM
From: Wyätt Gwyön	Respond to of 3951

your position on the 'relatively' low estimates. Let me be a little more blunt: I think the estimates are useless. If I thought they reflected reality I would quickly exit my position. I explained that SDLI should be earning close to 35 cents this quarter. HQ has them earning 35 cents two quarters out. If they in fact earn 35 this Q, and then grow the next two Q's sequentially at just 20% (the low end of the range), they will make 50 cents in Q4. So the analyst figures are just garbage, and trying to use them, even to "preprocess" them, is just useless IMHO. The old GIGO factor. Doubling the multiple applied to them does not really solve the problem in my mind. That is why I would rather look at the run rate, and compare it against the run rate of others in the field (like JDSU). Compare SDL's organic runrate revs/earnings against JDSU, and I think you will see where SDL is getting its momentum.