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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (49103)	4/9/2002 4:58:31 PM
From: augieboo	Read Replies (2) \| Respond to of 99280

well from a non day trading angle i have ESST down for a screaming buy anywhere below 16. It is a good company. It may be a good company, but it doesn't look like a good long term buy, IMHO. It's got diluted normalized EPS of $0.243 per share over the last four quarters. So, at the screaming bargain price of $16 per share, you're paying almost 66 times earnings. At $16.00, that's a 3.5% return. The consensus long term growth rate, (which is always too high), is between 21% and 26.33%, (depending on who you believe). At the 26.33% rate, at the end of five years, you'll be making 11.26% on your money, assuming the company meets that 26.33% growth rate and issues 100% of its profits as dividends. Over the last year, the stock price has gone up 242% while earnings have dropped by 82.33%. Finally, outstanding short interest is equal to almost 19% of the stock float. Maybe I'm just cynical, but losing $$ six figures on "screaming buys" just like this one tends to do that to a person. augieboo p.s. I used MarketGuide info.