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 : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: Bill Harmond who wrote (7545)	2/20/1998 1:17:00 PM
From: craig crawford	Read Replies (1) \| Respond to of 27307

<< Uniphase ($40) 1997A $.46, 1998E $.84, 1998E 1.20 >> I assume that last figure is supposed to be for 1999. Doing a little quick math tells me that UNPH is trading at a higher multiple than CIEN. I believe (correct me if I'm wrong) that CIEN has earned $1.32 in the last 12 mos. If you consider that CIEN has earned more money in the TTM than UNPH is supposed to earn in 1999 and is only 5 points higher I would say that CIEN appears cheaper or CIEN would need to earn less money in 1999 than in 1998. I don't expect that to be the case! Do you think estimates for CIEN are too high or do you think they will have trouble meeting them? Do you expect UNPH to beat the estimates to a greater extent than CIEN? Help me understand your thinking, I respect your opinion.

To: Bill Harmond who wrote (7545)	2/20/1998 2:17:00 PM
From: Oeconomicus	Read Replies (1) \| Respond to of 27307

Selling at less than it's growth rate. How do you figure that? $40/.46 is about an 87 PE. '98 eps growth is 83% and '99 is 43% by your numbers. Are you expecting the growth rate to rise to triple digits for 2000 and beyond? Even if you use a forward PE, 48, it exceeds the future growth rate. Is this how you value Yahoo too? BTW, the idea that a PEG ratio of 1:1 somehow means a stock is fairly valued is a perversion of the concept. It is a relative valuation tool, not an absolute valuation tool. Bob