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: bythepark who wrote (6117)	8/23/1999 10:03:00 AM
From: Mark Brophy	Read Replies (2) of 10309

Sun announced another merger comparable. They bought Forte Software for $540m, which has book value $37.6m and forward looking revenue $88.8m (most recent quarter * 4), which implies a valuation = 5.66x revenues. Using the same valuation for Wind River would yield $994m or $22.87/share. Forte Software looks like another example of a software company that makes more money for the hardware company than itself. Intel has clearly targeted servers as their growth engine as it has become clear that competing against AMD will reduce margins on desktop PCs. If Sun can keep Forte software off Intel and H-P servers, it might be a wise purchase. Sun also originally developed Java as a loss leader to sell hardware, but they claim it is profitable now.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next