Wind River going up, up, up! Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Wind River going up, up, up!

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Richard Forsythe who wrote (1114)	5/24/1997 11:47:00 AM
From: Mark Brophy	of 10309

You didn't consider reinvested profits. Wind River reinvests their profits in the company, so you can't make a meaningful comparison without also assuming the 10% bond investor also reinvests his profits. As a tech stock investor, you shouldn't compare yourself to a 10% bond. It's more appropriate to use an index fund that earns 12% or a blue chip stock like Compaq, HP, or TI that earns 17%. Wind River Compaq, HP, TI fund Year Acc. Earnings Growth Acc. Earnings Growth Earn Rate Earn Rate 1997 3.00 0.57 80% 30.00 5.10 17% 1998 3.57 1.03 80% 35.10 5.97 17% 1999 4.60 1.85 80% 41.07 6.98 17% 2000 6.44 2.59 60% 48.05 8.17 17% 2001 9.03 3.62 45% 56.22 9.56 17% 2002 12.65 5.07 40% 65.77 11.18 17% 2003 17.72 7.09 40% 76.95 13.08 17% 2004 24.81 9.93 40% 90.04 15.31 17% 2005 34.74 13.41 35% 105.34 17.91 17% 2006 48.15 17.43 30% 123.25 20.95 17% 2007 65.58 22.66 30% 144.20 24.51 17% 2008 88.24 28.33 25% 168.72 28.68 17% 2009 116.57 33.14 17% 197.40 33.56 17% 2010 149.71 38.78 17% 230.96 39.26 17% 2011 188.49 45.37 17% 270.22 45.94 17% Wind River is earning the same amount as the blue chip fund in 2009, but the accumulated earnings are much lower. You should invest in Wind River if you believe they have a better chance of meeting these projections than the blue chips. Intel has grown at an average rate of 30% for the last 11 years. Before that, they lost money when they got creamed by the Japanese in the DRAM market. You should invest in Wind River if you believe the RTOS market is as important as the microprocessor market and that Wind River will dominate to the same extent as Intel. I believe the Internet hardware and and software markets are the only areas that have as much potential as the microprocessor market had 11 years ago. Microsoft and Cisco are the only companies that have a chance to dominate as much as Intel. If you're a momentum investor, ignore this post and the posts of Allen Benn. And explain to me why the stock has gone down 5 points in the 2 days after an incredible earnings report and a big market rally that set new records. Momentum players are clearly in control of the stock price.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next