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Technology Stocks : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: Taby who wrote (1858)	1/7/1998 12:01:00 AM
From: David Rubin	Respond to of 6021

I believe the stock is undervalued. Current estimates for 1998 peg the 1997-1998 growth at 39%. NETA is currently trading at 22 times 1998 estimates. Assuming a 1998 P/E equivalent to the projected growth rate, NETA should be trading at $94. If you use the 1997 instead of 1998 earnings, the fair value is $68. Either way, the stock is undervalued at current levels. Perhaps more importantly, the chart is finally showing signs of an upward trend. In fact, the pattern from October to present is remarkably similar to the pattern from February to May -- just before the stock ran from 50 to nearly 80 in less than three months. If the overall market stabilizes a bit, we could see history repeat itself.