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Technology Stocks : New Era of Networks (NEON) -- Ignore unavailable to you. Want to Upgrade?

To: Paul Viapiano who wrote (406)	4/29/1999 7:39:00 PM
From: Jim Paxton	Respond to of 1222

Incredible? Hmmmm I am looking at a company selling at a PE of over 80 that came in with earnings 22% over estimates. At $35 NEON is selling at a premium to it's most optomistic growth rate (60%). Based on year 2000 estimated earnings ($.76) the stock is discounted about 15% from average growth rate. I would think the stock would be fairly valued at $26-$29 range. Don't get me wrong, I am not knocking the stock, would like to buy but having trouble with some numbers. The last report did show sales up 200% and net earnings up 500+%, but a small, growing company with such a high valuation in terms of PE can not afford to come in with "good" earnings - buyers are looking for blow-out numbers. This is especially true this year because most estimates have been revised downward last year. Right now my opinion is to stay away. If and when NEON drops down into the mid twenties - buy. Someone out there convenience me I am dead wrong.