Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Olu Emuleomo who wrote (32921)	10/13/2000 6:11:53 PM
From: minorejoy2000	Respond to of 42787

CNBC reported tonight that in light of this earnings announcements, analysts had revised their earnings projections 12 months ahead by 100%. I had read about 2 weeks ago that JNPR's PE had discounted revenue growth at 100% year over year for the next six years, not the ten mentioned here. The question was could a company maintain that? Jim Jubek's article on TheStreet on Saturday, September 23, 2000 (excerpt): "The market values Juniper at a lofty $66 billion -- and that's for a company with just $113 million in revenue in its June 2000 quarter and pro forma net income of $29 million. Why so dear? It's not Juniper's growth rate -- as tremendous as the company's growth is, the current stock price still discounts 100% annual growth (and a 100 price-to-earnings ratio) well into 2004. And if you assume that the stock will appreciate by 25% a year while earnings are racing to catch up, then the current stock price discounts 100% annual earnings growth into 2006. That's a lot of years at 100%. How far can this story drive Juniper? A comparison with JDS Uniphase suggests there may be an important psychological barrier at $100 billion in market capitalization for a technology stock that's running on potential revenue and earnings. Juniper won't run up against any fundamental numbers that might hurt its story until 2001. Analysts are projecting that earnings-per-share growth, currently projected at 1,071% in 2000, will drop to just 43% in 2001. That kind of drop, if it materializes, would probably be enough to stall the momentum even of Juniper. So, like Nortel, I'd say Juniper is good to run through the end of 2000 before it faces any major challenges from reality as we know it." This new revision would shorten that discounting by a year, it seems. As hard as it seemed to accomplish, it just perceivably became 17% easier than it seemed two days ago. M