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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Allan Harris who wrote (2678)	1/8/1998 4:50:00 PM
From: sea_biscuit	Read Replies (2) \| Respond to of 42834

Even with today's downgrades, EPS growth is at least 30% per year. Based on 1998 @ $1.30, PE is 14. 1999 estimates are $2.00, so assigning even a 20 PE for 1999 puts the stock at $40.00 in 12-24 months. I wouldn't hazard 1999 estimates for a company with little or no track record. And 30% growth per year over 3-5 years is an almost impossible thing in a very-low-tech sector like the restaurant industry. Then there is the market cap argument, that Planet Hollywood's market cap values 50 theme restaurants at $1.2B. RAIN has 14 now, plans on 50-100 in next 5-7 years. What? In 5-7 years?? If the company is still around, you mean? ;-) Talking of restaurants, you might want to take a look at Luby's Cafeterias (NYSE:LUB). Dipy.