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Technology Stocks : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: joe wiles who wrote (20652)	2/13/1998 8:10:00 AM
From: helkel	Read Replies (1) \| Respond to of 36349

Hate to pump other stocks, but all look at ZRAN, announced news today with IOM, and has just bounced off of support......just want others to make $$$ in this market i'm long and getting longer in pair and zran pair is dead $ til options i feel (high of 21.5 wont be pushed through til the 23 unless we get news) hk

To: joe wiles who wrote (20652)	2/13/1998 1:26:00 PM
From: Marc Trombella	Read Replies (1) \| Respond to of 36349

<<So with a forecast growth of 25%-30%and some negative sentiment primarily based on the RBOC's cutbacks in capital spending, why would PAIR trade at a PE of 130??>> Joe, there is no reason for PAIR to trade at a PE of 130. Here's the way I normally view PEs, although the market will sometimes dictate different. I look at the company's EPS growth for the current year. In the case of PAIR it is 25%. A reasonable PE is about 25. If you look at Yahoo, some analysts think, as hard as it may seem, that these internet companies will grow 100+%, hence PEs of 130. So assuming from a current Zacks's report on PAIR, a median EPS of 0.85, we get 20 11/16 / .85= 24.3. At a PE of 30, PAIR will be .85*30= 25.5. I think we'll see telecom equipment trade at a PE of at least 35 by year end. Last summer during "irrational exuberance", we hit a PE of 50 for PAIR. So the way I see it, as a worst case PAIR will be around $29.75. Hope this helps, let me know if you need some clarification. Regards, Marc