Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : PSFT - 1997 Outlook [closed thread] -- Ignore unavailable to you. Want to Upgrade?

To: Melissa McAuliffe who wrote (747)	1/18/1998 11:03:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 940

Hi, Melissa. Nope, they're using post-split prices (they quote the current price at $34). They don't say what time-frame they use for a target price. Also, it's a mistake to assume steady growth over the next five years. It's probably more reasonable to assume a steadily lowering growth that will average 50% over the next five years. I'm guessing we will see at least 75% growth year over year for '98. I think $.58 is too low, because from everything I've seen it looks like we can expect growth of about 75%, which implies earnings of about $.70-.75. But even here, it's hard to imagine why the stock should trade at over 100x trailing earnings. Regards, Paul