SI
SI
discoversearch

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 ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: JB who wrote (924)4/22/1997 4:48:00 PM
From: Mark Brophy   of 10309
 
That's a very good analysis.

Many mutual funds with lots of assets won't consider any stock with a market cap less than some arbitrary limit such as $500m. Small companies like Wind River are for small funds. Fidelity's Magellen fund should stick to Intel, Microsoft, and IBM. Small companies are for long-term investors rather than day traders.

If a large small cap fund wanted to buy a 1% position in WIND that might mean a purchase of 100,000 thousand shares. If you went into the market right now and tried to buy 100,000 WIND you might drive up the price $5 or $6 dollars. If you bought 100,000 IBM the price may jump 1/8.

See my post from a couple of days ago where I calculated that buying Wind River today is an advance payment for 9 years of earnings compounded at an annual rate of 32%.

the key to a companies current stock value is the discounted value of WINDs future EPS. If WIND was going to earn $1 dollar a share this year and $5 dollars next year and XYZ company was going to earn $1 this year and $2 dollars next year would you pay the same amount to own each company.

I'd pay more for Wind River or Microsoft than Novell, but I wouldn't pay any price. I'd rather buy an ounce of silver for $2 than an ounce of gold for $1000, even though the gold is worth more.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News