] Even worse, at $24.00, Red Hat trades at a whopping 110
] times 2004 earnings, or 22 times expected fiscal revenue
] for 2005. With a market cap of $4.5 billion, Red Hat's
] valuation outstrips the entire $1 billion market forecast
] for Linux. Even if Red Hat's first-quarter figures (out
] on Thursday) blow the socks off analysts' estimates, they
] still won't be able to provide a convincing case for that
] valuation level.
]
] At such a lofty price, Red Hat stock remains vulnerable
] to even the smallest misstep. Is it any surprise the CFO
] has decided to call it quits?

Fool.com: Red Hat's Red Flags [Motley Fool Take] June 15, 2004