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: Mark Brophy who wrote (893)	4/21/1997 7:19:00 PM
From: Jimbo Cobb	of 10309

Yes, Book value for a S/W company is A measure. But you could easily have, say, MSFT and NOVL with the exact same book value at some given point in time, and if that is the only measurement you are looking at to determine which stock to buy, you will probably buy NOVL, since I'm sure it will be trading at a much lower P/book multiple than MSFT... Has NOVL been a much better investment than MSFT over the past 12 months, 2 years, 3 years, 4 years ???? It has certainly been at a lower P/book multiple over this period of time... How does your analysis handle this, since book value appears to be the only thing you care about... In general, I would say that buying low P/book SOFTWARE stocks would be a sure-fire way to dramatically UNDERPERFORM the markets, since these are normally trading at low P/book multiples because they are dogs and normally stay dogs....but I'm just guessing as to historical performance, I could be dead wrong. Mark.

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