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Technology Stocks : Emulex, What Prospects? -- Ignore unavailable to you. Want to Upgrade?

To: chip who wrote (417)	8/4/2000 6:52:23 PM
From: The Ox	Read Replies (2) \| Respond to of 788

I suppose if I knew exactly where EMLX was going to go from here I would have a different job<g>! This stock has a way of fooling me so I may not be the one you want to get advice from!! After a stock moves 45% in a day, a little rest wouldn't be that unexpected. I suspect that the low 80s could be in the cards. So much depends on what type of multiple EMLX will get credit for? Do they deserve a 70 or 80 P/E on forward expectations? If the answer is yes then I think the 80s is about right. If they deserve a 70 or 80 P/E on trailing earnings, then we are close to fair value at the current price (70 x .86 = $60, 80 x .86 = $69). Should EMLX get a higher multiple based on the fantastic growth they've shown over the past 24 months? I hope this helps but I'm not sure it will! Best regards, Michael