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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Sandra who wrote (240)	1/27/1998 2:55:00 PM
From: James Strauss	Read Replies (1) \| Respond to of 29382

FIBR... ABTX... Sandra: FIBR and CIEN appear to be suffering from a Lucent news release about competing products... FIBR should be less affected... Support is in the 4.00 area... 3.50 offers more support... I'll buy more under 4.00... ABTX looks like it's heading towards 11 3/8 support... With est EPS this year of .25, we have a P/E of 45 at the 11 3/8 support price... With EPS est of .52 for next year, we would have a P/E of about 22... We could use the 75% of growth P/E to price approach and say that since EPS is growing about 100%, a P/E of 75 would not be unreasonable... In that circumstance the projected price would be (75 x .52) = 39.00... Even a P/E at 50% of the growth rate would give us a projected price of (50 x .52) = 26... So... The buying should start any time now... I'm getting ready to pull the trigger... Jim