One investor's story: Based on the unfolding Wind River story, as documented on this thread, I have just increased my long-term long position in WIND, despite its higher price (by about 2:1) since my last purchase.
The specific factors that compel me to buy more are:
1. I2O now has a momentum which guarantees a new high-margin revenue stream for Wind River, not previously significantly factored into analysts' earnings expectations.
2. The fear of Microsoft as a Wind River competitor is largely a unfounded. Windows CE 2.0 competes only in the highest-priced, lower volume segments of the embedded market, and only where deterministic realtime is not critical; and there seems little likelihood of Windows CE successfully migrating to the higher volume deeply embedded segments that Wind River is further and further owning, because of high Windows CE pricing, its large memory footprint, reliability problems, and marginal realtime implementation.
3. DSP product announcement: This is not only the basis for significant new revenues, but also has very strong synergy with existing business, strengthening Wind River's position in both DSP and embedded RTOS markets.
Thanks, Allen, for continuing to lead the way! It was nice to finally meet you, at ESC.
-David Schoenbach |
