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Technology Stocks : Xylan -- Ignore unavailable to you. Want to Upgrade?

To: Glenn who wrote (3452)	11/14/1998 4:04:00 PM
From: Keith Sprague	Read Replies (2) \| Respond to of 4135

Glenn, I agree that the market this week could be risky. However, the markets are inherently risky. On any given day, there is uncertainty, and there is always the chance that the market will correct. I do believe that the market is especially risky at this point, but for mainly different reasons. 1. Iraq looks to be OK (I know your post was before Iraq agreed to inspections) 2. Market froth - EBAY, AVCO, INKT, etc (need I say more) 3. Global economy - The world has not changed in the month or so that the FED cut rates. There are still problems, and earning estimates continue to fall. 4. DELL - IMO, this stock is very OVERVALUED at this point. Maybe I would consider buying at 40 or so. How does all of this effect XYLN - IMO, there growth will slow a little, as discussed in the CC after the most recent earnings report. That being said, IMO, XYLN is still undervalued. Growth for XYLN should exceed the growth for the industry over the next year or so. I'll guess at about 25-35%. Based on these projections, the stock at a minimum should be at (of course my opinion only): EPS for 1999: 1.04 Growth (min): 25X Min Target Price: $26 Growth (max): 35X Max Target Price: $36.4 That being said, I will probably sell some shares before 26. Probably at the $20 area. I see little downside from here. O course, if the market tanks, XYLN will go down. I would rather not try to time that. Besides, if XYLN were to get acquired on Monday, I bet you would kick yourself. I know I would. Good luck to you. These are my opinions only and should mean nothing to anyone but me. I am just expressing my feelings. Keith