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Technology Stocks : INFORMATION ANALYSIS (IAIC) - YEAR 2000 Date Remediation -- Ignore unavailable to you. Want to Upgrade?

To: ThirdEye who wrote (1316)	3/9/1998 4:17:00 PM
From: Matthew F. Kern	Read Replies (1) \| Respond to of 2011

Gary: OK.... back at 1309.... <<20 to 30 Billion LOC estimated for CA products in question and 30 cents per line of code and (my guess)probably at least 30% market share in CA languages or more and conservative 25% margins for shrink-wrap SW. Given these figures 1.8 Billion revenue available 450 Million profit or more over say 2 years? 225 million per year? 32 bucks per share for 7 million shares right?>> if we are at 0.30 pr line, we see earnings of $32 per share...... that is 20 billion lines times 30% market share (0.30) times 25% margins (0.25) then divided by 2 years to do remediation (more or less) gives $32 by simple arithmetic. Did I miss something here? But if it is the worst case I've heard IAIC sees only half of the 0.30 per line, or 0.15 per line for CA work. IAIC sees the full 0.30 per line for non CA work, but I will ignore that This scenario halves the figure above at worst. so that gives us $16.00 earnings with the worst data I have right? Multiply this times a minimal PE ratio of 10, that is $160.00 of stock price once earnings stabilize. Is that right? .............Matt