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


To: M CAHILL who wrote (2989)5/25/1999 9:33:00 PM
From: David Howe  Read Replies (2) | Respond to of 10280
 
Analysts predict the first profitable year to be 2001. Typical estimates for 2003 earnings are in the $10 per share range. $14 per share in earnings in 2004.

$14 per share X PE of 50 = $700 per share

That's more than a 1000% gain in 5 years.

This is of course an oversimplification, but you'd have to be pretty simple minded not to understand a stock trading on future earnings in lieu of current earnings.

Dave