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Gold/Mining/Energy : Royal Group Technologies, Ltd. (RYG) -- Ignore unavailable to you. Want to Upgrade?

To: AL PELLICCIO who wrote (137)	3/20/1998 7:41:00 PM
From: Julio P. Antelo	Read Replies (1) \| Respond to of 199

The company's strongest qtrs. have always been the 3rd and 4th qtr. so the best time of the year for earnings is still ahead. I'm expecting a full $1.19/shr (US) in earnings for all of 1998 so based on today's closing price of about $31, the market is giving us a multiple of 26 or so which just about matches the company's growth rate. So I'd say we're about fairly valued here. I agree with you, if we have a couple of real strong qtrs., and it looks like we might beat those estimates, we may get a higher multiple. So $33-$34/shr is not totally out of the question by the end of the year. There has to be some kind of market pullback later this Spring or Summer so don't expect this to be a totally smooth ride. When I first bought the stock 2 yrs ago I thought the company has the potential to earn a full $2/shr by the end of 2000. Nothing I've seen in the last two years has made me change my mind, so if we're lucky enough to get the same P/E as we have today, we're looking at a $52 stock in less than 3 years. That's what I like about this company: as you say, steady predictable growth. Later. Julio