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 : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: john dodson who wrote (20810)	3/8/1998 9:37:00 PM
From: kahunabear	Read Replies (1) \| Respond to of 97611

You think CPQ is going to earn $1.50 this year? I don't think anyone knows right now. I think the estimate was around $1.70, correct me if I am wrong. Well, you can subtract at least .35 from that. That gets you down to 1.35. They expressed doubt about the second quarter too, so lets take another .20 off. That gets you to 1.15, and assumes a miraculous turn around for the remainder of the year. So its a PE of 13. Anyway, how good do you really think these estimates are at this point. Obviously, the current quarter was wrong by 100%. That's one of the big problems with this market. Looking at forward PEs. They are quoted these days as if they were the actual. I would suggest using actual PE as a much more meaningful gauge or at least taking the current quarters earnings and annualizing it. Do that with CPQ, and see what you get. I think last years price when sales were equal to this quarters, and earnings were much higher and growing, is more than fair. WS