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

To: AL PELLICCIO who wrote (165)	6/6/1998 8:46:00 PM
From: Julio P. Antelo	Read Replies (2) \| Respond to of 199

Al, good to hear from you. Hope you had a pleasant trip. You did well selling some in the 30s. We all knew the stock was overextended with a PE well above its growth rate. Even at this level, $27+/shr., the stock still carries a high PE of about 29-30 (based on TTM earnings). The forward-looking PE is much better (about 22-23) but that is based on the assumption the company can make at least $1.19 earnings this year. The 3rd and 4th qtr are going to be crucial for this co. The earnings in the first 2 qtrs. were decent, not spectacular, so the next 6 months have to be real good. I'd like to see us beat the full year estimate. The housing market still looks strong, so that's a positive. I'm looking to buy more but won't buy at this level; I think the market will continue to roll back and forth and this stock has shown me that it can correct along with the rest. Will wait to see if I can get in at a lower price. Later, Julio.