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zzaxx99 - Thu, 01 Jan 04 :

-- dollarhoggar

ZZaxx99 questioned the possible valuation put on Tad shares with a pe of 15

Not 15, but 50 - big, big difference. The whole point of my argument is that, if the broker forecast is correct, even at a sky-high P/E, TAD is already virtually fully-valued on fundamentals.

This of course does not preclude the price going (way) higher on speculation, but does imply that (again, if the broker forecast is correct), that the price must eventually come back to something with a sane valuation. Even the likes of ARM only has a P/E of "only" mid-30s.

If the broker is wrong, then all bets are off, and the sky's the limit - provided TAD can convert deals into dollars.


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