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Technology Stocks : Juniper Networks - JNPR -- Ignore unavailable to you. Want to Upgrade?

To: Wes Stevens who wrote (2072)	1/18/2001 9:12:57 AM
From: t2	Read Replies (1) \| Respond to of 3350

CEO also took a shot at wall street analysts. Raised guidance by 200 million. Prior to this quarter, I believe yearly revenues were only about 400 million. Now we are going to see 1.5 to 1.7 for this year. That is unbelievable. Its growth rate appears to higher than its PE. Gross margins not deteriorating but sales increasing at incredible levels. What happens when the economy starts recovering later in the year (as many expect), it could be even stronger. I also don't like to hold stocks with too high a PE but this is not a Yahoo or AMZN. IMHO, its market position and growth rate justifies a high PE. In addition, we have a high barrier to entry in this market and that has a lot of value as well. It will be interesting to see how this unfolds but I am going to hold onto to this in the ups and downs of the market and my feeling is that mutual funds will be doing the same unless the fundamentals change or there are hints of weakness in its business.

To: Wes Stevens who wrote (2072)	1/22/2001 11:42:07 AM
From: John Carpenter	Read Replies (1) \| Respond to of 3350

The current high estimate for 2002 earnings per share is $1.62 Juniper has repeatedly blown away even the highest estimates and by raising future guidance they are giving the strongest indication that this is likely to continue. So, the forward PE ratio is 80 or even less if the company continues its exemplary execution. A forward PE of 80 is not too expensive for a company growing as rapidly as Juniper. Recent market activity shows us that PE ratios change so rapidly based on market psychology that a focus based primarily on PE ratios does not explain the price behavior of stocks.