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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Judith Williams who wrote (40362)	3/13/2001 11:02:44 AM
From: Bruce Brown	Read Replies (3) \| Respond to of 54805

Judith wrote: Sure I paid too much for Siebel. But, as a business proposition, it's a hell of a lot more interesting than a company than sells sugar water, has a PE of 60, negative earnings growth and revenue growth of 3%. In regards to the sugar water company.... Back out the non-recurring charges for 1999 and 2000, normalize the EPS, dig through the tax structure, visit the CCE choice to lower inventory from 40 some odd days to 34 days, look at management's guidance for 15 - 20% EPS growth this fiscal year, see the recent consensus estimates of $1.71 for 2001 EPS and you will find the TTM PE is in the 30's and the estimated PE is 29 and change based on a share price of $51. We could ask the same question - "Is Qualcomm's TTM PE ratio really 348 or 360 or whatever it is a quote service will dish up at the moment?" BB