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Technology Stocks : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: AlienTech who wrote (4709)	4/6/1999 3:48:00 PM
From: Susan Saline	Read Replies (1) \| Respond to of 6021

neta now following bmcs lead

To: AlienTech who wrote (4709)	4/6/1999 3:50:00 PM
From: zx	Respond to of 6021

stock had trouble breaking 21 and is now over 22 rt.

To: AlienTech who wrote (4709)	4/6/1999 4:44:00 PM
From: Chuzzlewit	Respond to of 6021

Alien, this stuff has been around for so long you'd think it would have already been discounted and understood. Apparently not. I have Phillips' report in front of me. Tell me what I'm missing. He projects this year's earnings down from $1.82 to $1.72 which reflects not only the goodwill amortization but lowered topline growth growth and a lowered rate of acquisitions (which is odd, because as I've shown repeatedly, the only way you get accretive or neutral acquisitions is by buying companies at under market value or growing faster than your company -- unless you assume substantial synergies). He also projects 25% eps growth over the 5 year period. Now, if you follow his assumptions and extend them you would come up with forward P/E (next four calendar quarters of around $1.75. That gives a forward P/E of 12.5 for a company expected to grow at a sustained rate of 25% per annum. This makes no sense to me, and in fact, were the company trading at $30 it would still be selling at a massive discount to the market line. In fact, given his assumptions, I would think the stock ought to be trading at between $50 and $60 right now, which would imply forward P/Es of between 28.5 and 34.3. If anybody is interested, I can expand on the point that acquisitions accretive to eps are illusions. TTFN, CTC