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To: Charlie Smith who wrote (2353)12/4/1997 11:34:00 PM
From: SteveG  Read Replies (1) | Respond to of 6180
 
<..How does a 3.5% estimate cut for 1998 translate into a nearly 40
percent fall in the stock price?>

Well, Kurlak went from $3 to a low of $2. That would be a decrease of 33%. Of course, Chaplinsky was more optimistic going from 3 to 2.9 (but in an averaging, I'd personally weight in favor of Kurlac).

But consider the following, including long term growth rate projections and a more conservative TTM PEG (which currently ranges from 1.5 to 1.8):

Message 2882566

For instance, on the conservative side: 20 (FC 3-5yr GR) x 1.31 (ttm) = $26.

Steve