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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Joey Two-Cents who wrote (11982)	7/24/1998 9:57:00 AM
From: Roger A. Babb	Read Replies (1) \| Respond to of 18691

Joey, I just added a new short position in NTBK. Look at their earnings report yesterday. They report 51 cents, but only 2 cents was "real". 49 cents was a recognition of tax carry forward benefits from previous losses.

To: Joey Two-Cents who wrote (11982)	7/24/1998 1:17:00 PM
From: craig crawford	Read Replies (3) \| Respond to of 18691

>> If they report EPS 60% better what would the PE be? 50 x's << DELL's next year EPS estimates are $2.61 At the current price of 103 that is 40x. DELL would trade at 50x at a price of about 135. DELL should trade at 150 if you ask me but I'll settle for 135 by earnings. Now contrast this with KO. Coke trading at 44 times next year earnings right now even after their earnings FELL 9% last Q. I guess I just don't understand how KO can trade at 44x earnings with little to no growth while DELL racks up 50+% EPS gains Q after Q and is only awarded a PE of 40. This business about KO earnings being much more reliable is a bunch of baloney. They declined last Q. Doesn't sound too reliable to me.