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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: unclewest who wrote (19139)3/1/2000 5:07:00 PM
From: Mike Buckley  Read Replies (3) of 54805
 
I've never mentioned this before that I can remember, but I've been watching Wind for several years now. Though revenue has been growing reasonably consistently, EPS has been extremely erratic. Witness:

FY '97 EPS: $.29
FY '98 EPS: $.11
FY '99 EPS: $.61
Trailing EPS: $.53

I should give myself a good slap across the cheek for not determining the EPS excluding one-time events, especially considering how often I've advised people around here to do that. But even if excluding the one-time events does smooth out the EPS trends, there's a point that if there are so darned many one-time events throughout the life of a company, they should be considered regularly recurring events in and of themselves.

Either way, the EPS for Wind has been unbelievably erratic. The timing of any investment I'd make would require tornado-like growth in revenue not yet seen and/or reason to believe that revenue consistently increasing at a faster rate will indeed drop down to EPS with a comensurate degree of consistency.

--Mike Buckley
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