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Radware Ltd. (RDWR) Message Board

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  • kdp2561 kdp2561 Apr 23, 2001 6:08 PM Flag

    Re: Down 1.75 in two days on No news

    I'm sorry to hear that your average is so high, but if you don't need the money for the next 5 years my opinion is you shouldn't sell. Remember RDWR has NOT warned this Q or any other. There are almost no tech companies who have met expectations but RDWR has so far.

    Think about it this way. RDWR is expected to increase earnings at an average of 55% per year over the next 5 years.

    Last year=0.34 EPS
    2001 =0.34*1.55=0.53
    2002 =0.53*1.55=0.82
    2003 =0.82*1.55=1.27
    2004 =1.27*1.55=1.96
    2005 =1.96*1.55=3.04

    Now lets say that it trades at a PE of 30(this is conservative the current PE=40).

    2001 =0.53*30=15.9
    2002 =0.82*30=24.6
    2003 =1.27*30=38.1
    2004 =1.96*30=58.8
    2005 =3.04*30=91.2

    If you are confident in the company long term then you should be buying more now so that you can profit earlier. I have moved my average buyin price from 32 to 25 by "averaging down". But this is a matter of personal opinion and situation.

    Another convincing list of facts is found below in a post I made about a month and a half ago.

    If you are still not convinced or if you can't sleep at night because of this investment then you should sell. No investment is worth losing sleep over.

    Good Luck.

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