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Technology Stocks : Wolf speed -- Ignore unavailable to you. Want to Upgrade?

To: ratan lal who wrote (3462)	8/3/2000 3:08:32 PM
From: BI*RI	Read Replies (2) \| Respond to of 10713

The .87 is now trailing earnings. You asked about paying for 15% sequential growth going forward, and what metric could be applied. Well, 15% sequential growth quarter to quarter is 75% annual growth, For which a P/E divided by growth ratio (PEG) of 2 would be reasonable for me. Thus a P/E for next year earnings multiple of 150 is indicated. Going forward, and I annualize all earnings of the companies I follow on a calendar year so that the time frame is equal, earnings for CREE year-ending 12/31/00 should be 1.19. So a price of $163.50 would be reasonable at that time. Taking our numerics into year ending 12/31/01, with EPS of 2.08, a stock price equivalent would be $312. Marc