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Technology Stocks : ADTRAN !?! -- Ignore unavailable to you. Want to Upgrade?

To: TelecosmFan who wrote (674)	3/14/1998 5:32:00 PM
From: TelecosmFan	Read Replies (1) \| Respond to of 766

The PE to Growth model takes this PE and divides it by the company's expected 3-5 future earnings growth rate. Ideally a company growing at 25% would have a PE of 25 or a PE to Growth ratio of 1 (25 divided by 25). Therefore if you find a stock with good solid business fundamentals and a PE to Growth ratio under 1 then it could be undervalued. However, this formula is easy to screw up if you miscalculate next year's predicted earnings or assign the company an incorrect future growth rate. ADTN has a GRT of 12 % per year. GRT stands for forecasted Earnings Growth Rate in percent per year. GRT is updated each week for every stock.Watch GRT trends very carefully. If the GRT trend is up, the stock's Price will likely rise. If theGRT trend is down, the stock's Price will increase more slowly, cease to increase, or subsequently fall. Adtrans earnings are now $1.03, the PE is 28. If the above is true then Adtran should be valued at about $13 per share. That is why I am short at this time.