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Technology Stocks : LTX Corp. (LTXX) -- Ignore unavailable to you. Want to Upgrade?

To: Robert who wrote (2050)	1/2/2001 10:58:51 AM
From: Duane L. Olson	Respond to of 2126

Robert..No question there is some deterioration from the most optimistic projections for LTXX. Within the past week analysts have reduced their earnings projections, in fact. In perspective, however, LTXX's prospects arent' being marked down nearly as much as those for the S&P (from a growth rate project in the teens down to the 4-5% range currently), nor for other tech stocks in general. About two cents have been knocked off the January quarter, and 4 cents off the April quarter. And results for the next year, ending in July 2002 have been marked down by about 18 cents. biz.yahoo.com However, the reduced estimates leave LTXX with a projected continuing growth rate above 30 percent, and a current PE (to July 2001) of about 7.5. To me that makes it worth while to continue holding LTXX -- any near term weakness is likely to be more than made up for by a return to a more normal valuation (say, 20 - 30 PE and a price of 40 to 60) based on net year's earnings when the market gets back to more typical conditions..... all imho, of course... TSO