Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Aastra Technologies - telephony, e-cash, mini-ATM -- Ignore unavailable to you. Want to Upgrade?

To: StockPro who wrote (37)	1/10/1999 7:45:00 AM
From: Jean-Robert Grenier	Read Replies (2) \| Respond to of 233

Hi Richard ! You can also find any stock on the Yahoo! financial site. As you can see you have to chose the symbol of the stock follow by a ( . ) and finally the address of the stock exchange. quote.yahoo.com Au revoir Jean-Robert

To: StockPro who wrote (37)	1/10/1999 1:09:00 PM
From: sPD	Respond to of 233

The price to revenues multiple target used by the analyst was 3.3X If you do the math, this comes out to a pretty eye-popping target price for Aastra! However, his multiple was for comparatives in the IT consulting business, not telephony or e-commerce. I don't know how they would compare - perhaps someone else could help us here. The other multiples he used were 25.5X for price to EBITDA and 49.8X for price to earnings. He put all of these together to come up with a composite target and then proceeded to reduce that figure by 40% due to the conditions particular to that stock which included lack of liquidity, neglect by analysts and the small firm effect (inability to capitalize on economies of scale). One of the things he didn't consider however was the growth factor used by Peter Lynch in which he suggests that a firm's PE should tend to reflect its growth rate. As mentioned in one of my earlier posts, AAH has basically tripled revenues year-over-year for each of the three quarters this year so a PE of 46 would seem low under that model. Hope this helps.