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Technology Stocks : QUANTUM -- Ignore unavailable to you. Want to Upgrade?

To: Z Analyzer who wrote (4285)	10/22/1997 2:16:00 PM
From: privatesmith	Respond to of 9124

Z Analyzer: There's more than one way to "skin a cat"; and, yours is as good as anyone's. I did not forget to anualize revenues but rather conducted a take-off on what I think I heard in the call and let the rest fall where it may. There's a bunch of ways to place value...and, in the end, the person that wins is the one that leaves with money to take off the table. Using your Q2 EPS for DLT and your 30 PE and imputing it ot an annulized growth rate in Ben Graham's formula for valuing growth stocks, look in "The Intelligent Investor", page 158, "Value = Current (Normal) Earnings X (8.5 plus twice the expected annual growth rate)". Using the formula and interpolating that from you that I've imputed to growth and earnings, I come up with: ((2x30)+8.5)x(4x35c) = $95.90 value per share. Me? I'd risk discount this by 50% to 75% for a near term sell range...anything under 50% is my buying range. Valuation is a murky business...and, I'm no expert. Ed