Wind River going up, up, up! Message Board

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

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To: Ronald Paul who wrote (2445)	11/21/1997 3:55:00 PM
From: Richard Karpel	of 10309

>>>Im still perplexed by the lukewarm response WIND receives when they are one of the very few small-caps that are positioned well for the type of growth in the embedded segment, well managed and consistently beat estimates 15 quarters running.<<< I think it's just a matter of numbers. Last I looked, WIND was trading around $40. Even at that price (which all of us consider to be low), the trailing PE is about 68, or about 35% higher than the company's consistent 50% earnings growth. WIND trades at a premium to its growth rate because of all of us who understand the technical factors that make the company a great long-term investment. It doesn't trade much higher than that because of everyone else. By now, it's pretty clear that WIND trades somewhere between a 50 PE (in bad markets) and a 100 PE (in good markets). It looks like it's destined to maintain that price range until I2O or something else allows it to produce earnings growth that is greater than 50%. P.S. With a market cap over $1 billion, WIND isn't a small-cap anymore.

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