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Technology Stocks : Advanced Fibre (AFCI) ** IPO -- Ignore unavailable to you. Want to Upgrade?

To: Capitalizer who wrote (238)	12/17/1997 8:46:00 PM
From: Clam Clam	Read Replies (1) \| Respond to of 3299

Hard to imagine there is that much downside from here. The stock is essentially where it was in Q4 1996. The earnings have grown well beyond expectations and AFCI is gaining critical mass. Morgan Stanley is now using a price target of $40 based on 56x 1998's earnings. AFCI will likely beat estimates but growth will slow down a little from its blistering pace of 1997. TLAB still looks like the best comparable. TLAB is growing earnings at about 1/2 the rate of AFCI and TLAB trades at almost 30x 1998 earnings vs. AFCI's 1998 P/E multiple of 35x. AFCI looks relatively undervalued.