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To: kash johal who wrote (6442)	12/11/1997 12:06:00 PM
From: still learning	Respond to of 9124

You make some excellent points, but, disregarding whether FMV for WDC is $5 or $17 (quite a range) we can reasonably say that DLT deserves a higher multiple than 10X regardless. In other words, if it's net income is growing at 30-40% yrs ,and we take a very prudent 50% discount for risk, then DLT is worth 20X earnings. And, while it may or may not achieve "full valuation" I think the 50% discount accounts for that. So we do not have to discount further, but even if you feel we do, I think someone needs to make a case for what the "right" discount should be. IOW -- how do we arrive at the DLT multiple, and then we can compare that against the market's judgement. Clearly there is some added visibility needed for the DD biz to accurately guage is, but DLT, despite the few caveats in the news release, does not seem to be below the estimates posted in Sankar's message.