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

To: Cary C who wrote (1445)	3/5/1998 9:05:00 AM
From: Raymond Hill	Read Replies (1) \| Respond to of 29382

A $22 share price would be an incredible achievement. I think we will have to see what has been actually told to people to assess the likely prospects of that happening. However, with the current trading volume and chart pattern, I am extremely optimistic about PCTH breaking into new all-time high territory above $7.00 with a fast run up to $8 -$9. There will be plenty of time for me to assess events as they unfold. About 9 million shares have been traded in the last three weeks. It makes me wonder how many older shareholders are still left. There are a select group of super growth stocks that have very high PE ratios based on their rapid and continuing sales and earnings growth. I do think that PCTH has the potential to have an above-average PE ratio, which would be a very big help in breaking into a much higher price. At the current price it is only 16 times estimated earnings for the year beginning June 1. The Wall Street Journal yesterday indicated that the S & P 500 are trading at forward PE ratios of at least 20, which should indicate that PCTH is at least 20% undervalued, relative to them.

To: Cary C who wrote (1445)	3/5/1998 10:32:00 PM
From: Amigo Mike	Read Replies (2) \| Respond to of 29382

Why are the Amigos so high on boring old DHI ???? Check out these details: DHI has a $339,000,000 backlog, and Dobson (recent acquisition) had a backlog of $48,000,000. In last report, CON reported $304,000,000 in backlog, giving a total combined backlog of $691,000,000 for the merged company. YIKES !!! =) There will be less than 15 million shares issued for the CON merger. DHI will get the lowest conversion rate as a result of the high average price recently. The combined company will have ~52.5 total outstanding. More than 65% will be owned by institutions and insiders by our calculations. =) The merger with CON is complementary. The combined companies own real estate from the Mid Atlantic to Southeastern to Southwestern US in some of the MOST prime areas. The combined companies should easily be able to take advantage of economies of scale. Cut cost of administration .... retain high quality mgmt team. Favorable interest rate environment fueling the new homes marketplace. By our calculations ..... the combined company can earn at least $1.55 per share FY 98. With a reasonable PE of 20 .... DHI is worth $31.00. DHI will be a monster !!! We believe $31 is conservative. DHI should command a premium as an industry leader. Amigo Mike