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

To: WTSherman who wrote (1550)	9/19/2000 12:53:32 PM
From: Paul Nicholas	Read Replies (1) \| Respond to of 1648

You are right, there are positive earnings. But how do you value a company with 30% revenue growth? I'm looking at estimated earnings of .68 this year and .90 next. OK? So, If I'm a value investor, I put a PE of 30 to 40 on TKLC, i.e. or roughly a price of $27 to $36 on next year's earnings. Now if there is a setback in earnings or a slowdown in telecom equipment growth (which no one is projecting), IMHO that could be a problem. Right now, I have no position, but I would be looking for an entry under 20 with a serious near term selloff. However, everyone has their own take on buying and selling stocks. My previous statement is based on seeing a PE of 200+ which would scare off potential buyers without some bottomline growth, does make sense?