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 : SYNTEL (SYNT) - Upcoming Year 2000 IPO -- Ignore unavailable to you. Want to Upgrade?

To: Risky Business who wrote (870)	2/23/1998 4:19:00 PM
From: wlheatmoon	Respond to of 2761

Jamesjay, I don't know that there is ever any real justification for stock prices. Just look at AMZN, AOL, YHOO, etc. The number of stocks with ridiculous valuations are high. Has this one reached that level? I don't think so. I'm not smart enough to trade this one, so I'll just hold until I think the run is done. I don't think that has happened yet, but that's just my opinion. The volume remains high for a float of 3 million shares. This stock has traded 4 million shares since 2/5 when the price jumped close to 17. It's been flying ever since due to good earnings, exposure, low float and now momentum. When is the nice ride going to end? Who the hell knows!! The volume was 700k shares today. Pretty darn good and another nice gain. If the volume persists, it will keep running. This sector (Y2K service) is hot. The last time I checked only 4% of the shares are institutionally owned. That may have changed with the recent price and volume move. I think the down side is minimal. I always seem to bail too early on winners and let the losers go too long. I'd like to change that stupid behavior and keep my winners and let them ride. Good luck and good investing. mike

To: Risky Business who wrote (870)	2/23/1998 8:31:00 PM
From: Intrinsic Value	Read Replies (2) \| Respond to of 2761

>>Although I would like to hear from you people who think that an >>800 million dollar market cap is justified when SYNT just posted net >>earnings of 3.78 million. It may not be appropriate to value high growth companies such as SYNT on trailing earnings. On a forward earnings basis, assuming a 12 % revenue run rate quarter-to-quarter and declining SG&A expense as a percentage of revenue, I believe SYNT will make $2.29 a share in 2000 and still maintain a sustainable 3-to-4 years earnings growth rate of around 45%. This means that SYNT will be fairly valued at over $100 a share 2 years from now. Regards, Value