| Comment
Tellabs
produces and markets an extensive line of voice and data equipment.
Earnings growth has averaged 70%/yr. for the last 5 years, and
predicted GR=30%. Net profit margin is 21% and ratio of current assets
to current liabilities (current ratio) is a healthy 4:1. Price trend
is favorable. Nominal PE=23 and PE=39 is high, but the future looks
favorable. Estimated profit advantage, GIV=75%. Price on 12/31 was
$68.56.
The following graph is
taken from a recent STT Advisor. Note the agreement between the long
and short term predictions.
|