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Strategies & Market Trends : Position Trading Forum -- Ignore unavailable to you. Want to Upgrade?


To: Glenn who wrote (4004)10/21/1998 8:35:00 PM
From: Keith Sprague  Read Replies (1) | Respond to of 7247
 
Glenn,

Here is why I bought XYLN:

Estimated growth rate in the future (based on CC): 25-30%
Next Years Earnings Est: 1.07
Current P/E based on next years est: 14.14
Fair Value based on forecasted growth (IMO): $32-$35

I base my valuation on the fact that the company will grow above the industry average, which was mentioned as 25% in the CC. I also throw in a couple of bucks for earnings consistency recently. That is my fair value of XYLN, without taking into account any merger possibilities. Throw that in the mix, and IMO, this stock could see $40 sometime next year if they are not acquired before that point. I doubt I will hold til $40, but I do plan on holding until $30-35. Just my take on XYLN.



To: Glenn who wrote (4004)10/21/1998 10:40:00 PM
From: aps  Read Replies (1) | Respond to of 7247
 
your stop orders will be taken out and the price brought back up again... this is very normal with mm behavior. They can look at stops and limits and manipulate them to their advantage. xyln on its own has the potential of being a 25+ stock within six months. Could it get acquired tomorrow ..yes, but if it doesn't that will not mean that they will not get bought...we may just have to wait.



To: Glenn who wrote (4004)10/22/1998 9:49:00 AM
From: gerard mangiardi  Respond to of 7247
 
I think that aquisition of xyln has little to do with the recent move up. Its a small cap co that was ignored when everyone was convinced to buy the giants and the recent sell off in the networking group pushed it to ultra cheap levels. Earnings momentum through all of this has remained intact and now stock momentum is just beginning. We've got at least 10 dollars to go.