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Technology Stocks : NHC COMMUNICATIONS (TSE:NHC) acquiring THE FIBER COMPANY -- Ignore unavailable to you. Want to Upgrade?

To: hugh thorne who wrote (691)	1/25/2001 4:55:18 PM
From: hugh thorne	Read Replies (1) \| Respond to of 856

Looking at a few Naz co's, seems to suggest a p/e of 28 or so for a stock like NHC. To get CDN$ 35 a share we need an eps of about CDN$1.25; using o/s shares of 17 million and a bottom line of 15%, we need annualized revenues of about CDN$ 140 million per year. Assuming that revenue, it would need about a 5 times sales valuation to support the CDN$35 per share. Both of those seem reasonable, but as has happened all year with this stock, we need to just keep waiting for the valuations to come up.