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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today -- Ignore unavailable to you. Want to Upgrade?

To: LT who wrote (3558)	3/15/1998 3:02:00 PM
From: Jumpin Joe	Respond to of 19331

Lou, In two paragraphs, you speak volumes of truth! Joe Medsker (#3491), Thanks for the update on Mr. Murphy's revenue targets and on the share repurchase program. Your posts are greatly appreciated. Big Bee (#3489), I use to do "worst case scenarios" for revenues/earnings estimates, but I usually way underestimated using that approach (I can think of catastrophic scenarios for almost any company). Personally, I've found it better to make a realistic estimate (albeit conservative) and then try to calculate the stock price based on high/low revenue and earnings multiples for an industry. There are always extremes in valuations, but I assume that in the long haul, companies will come back to historic ranges. I look for companies that are currently priced 50-100% below my "next year" low end valuation, which gives a reasonable cushion. Both our approaches are conservative in that respect, allowing us to error on the side of a potential "positive surprise" vs. being over optimistic and getting a "negative surprise". Of course, it is important to look at all the other aspects of the company and not just revenues and earnings. Good investing luck to all. JJ