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Technology Stocks : Dupont Photomasks (DPMI) -- Ignore unavailable to you. Want to Upgrade?

To: jeffbas who wrote (316)	3/3/1998 3:30:00 PM
From: Duane L. Olson	Read Replies (1) \| Respond to of 955

Jeffrey, nothing here to DISAGREE with me about. Feel free to state your opinion..everybody is entitled to one. And whatever my assessment is, and whatever your assessment is, the market will be the final arbitrator, wouldn't you agree? I've been making purchase decisions as low as 26, and as high as 39, based on MY belief that DPMI is worth a PE of over 20. Those who disagree will likely sell the stock...or not buy. Further, for my OWN calculation of DPMI's worth, I use a "Discounted Present Value Model", in which I assign certain earnings growth assumptions out two years, value the stock at the "market" growth rate for comparable earnings, then discount that value back to the present to determine the "worth" of the stock.. On that basis, and using an "investment return interest rate" of 15%, I get a current value for DPMI of 69. That, of course, exceeds my estimate of a desirable current PE of 20, it's not that I would PAY 69 for the stock..but it gives me a warm, fuzzy to do the calculation. Please share your own view of the stock valuation, but please don't feel you need to "disagree" with me to do so. FACTs are something to agree about or disagree about...because they are either right or wrong and can be verified or not. Opinions are neither right nor wrong...they are just viewpoints..so there isn't anything to disagree about, IMHO.. so share YOURS...we are interested. TSO As for the possibility that the current quarter's earnings could fall under $.50, you could well be correct. Unless they fall below, say, $.45,however, I won't consider that justification to revisit my valuation numbers...I can "look over the valley", and if the outmonth prospects APPEAR to still be consistent, I won't change my investment posture. Quarter to quarter decisions, in my experience, detract from solid long-term investment... TSO