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Author: ricpir Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 21  
Subject: What growth should we expect ?? Date: 6/20/2006 12:54 PM
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Looking at last quarters the growth is incredibly high but sales are growing something like 18%.
It is normal that when a company is growing and margins are improving the EPS and the cash flow grow much faster than sales and this is happening right now in WBD.
But this is not sustainable, in the long term we can assume that EPS and cash flow will grow more in line with sales.
I am very surprised that analysts following this stock are forecasting 43% EPS growth for the next 5 years (according to Yahoo) and at the same time 4 analysts grade it a Hold and only one a buy.
If this company grows earnings by 43% in the next year I would put all my money in it and I think it will at least triple in price in the next 5 years, how can it be then that they rated a "Hold"???
And how is WBD going to manage to achieve a 43% growth in EPS, for acomplishing that it should grow sales at least 30 or 35% or continue expanding margins very strongly???
I like this company, I like the bussiness, but this inconsitencies make me hesitate.
I think I will start a position with 1/3 and then wait for better prices and for better information I really can't believe the 43% growth when it is growing sales by 18%.
Thanks in advance and sorry for my bad english.
Ricardo.
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