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Biotech / Medical : Sepracor-Looks very promising -- Ignore unavailable to you. Want to Upgrade?


To: wolfdog2 who wrote (1802)2/20/1999 2:13:00 PM
From: IRWIN JAMES FRANKEL  Read Replies (1) | Respond to of 10280
 
Wolfdog you should learn how to do present value calculations or try to lie to some who can't.

<$14 x 40 = $560. That looks pretty good. But wait. These aren't next year's earnings or even the year after that. Perhaps these targets will be reached in 2003. Maybe. Let's say they are. Then we need to determine the discounted value of $560. If you discount it by 40% per year, you get a current value of $72 per share. >

The PV of $560, 4 years out is $145.77 discounted at 40%.

The PV of $560, 4 years out is $196.07 discounted at 30%.

I could live with ONLY 30% but looks like I get 40% or higher.

ij