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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Pink who wrote (583)	11/4/1997 3:34:00 PM
From: David S.	Read Replies (2) \| Respond to of 18998

Lo and behold, I believe I may have found a fundamentally dramatically overvalued stock. is it possible? How could such a thing exist? The symbol is... D B T. Consensus for this year is $.17 and next year $.37 The stock is around $28. If it could continue that growth, the P/E could possibly be justified, however what the street seems to be blind to is that a large component of the earnings stream ceases to exist just a few years from now. That portion of the earnings stream is from patent royalties. So, since about half of the earnings will disappear, should people put a high P/E on the portion of the earnings that disappears? Probably not. Oh well, I could be wrong, after all a few thousand years ago a little bit of oil that was only supposed to last one day lasted 8 days. So maybe there will be a miracle and the earnings stream will last longer?