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Biotech / Medical : PLC Systems -- Ignore unavailable to you. Want to Upgrade?

To: Charger who wrote (781)	4/28/1998 12:34:00 AM
From: K.C.	Read Replies (1) \| Respond to of 1202

Charger: Go look at NOVL's multiple and then look at CSCO's. I haven't checked, ever, that I can remember, but I'll bet you that CSCO's is considerably higher than NOVL's. The point is that CSCO is having considerable success and NOVL isn't. They're in the same basic industry but eps growth has got to be different, so I suspect their multiples will be also. If not those two, find some. look for a company that's doingwell and another in the same industry that's not. You will see a difference. Another thing is that companies in the same industry tend to benefit from the same economic conditions. So if one company in an industry is doing well, the other one has a good chance of doing well also. In that respect, there are industry similarities in multiples. In my opinion, the answer to your last question is "yes, don't worry too much about industry standards. Pay attention but let the growyh rate in eps have the most weight." Lot's more to it, but I gotta hit the sack! Good trading! KC