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

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To: KevRupert who wrote (7875)6/2/2000 2:46:00 PM
From: Richard Knox  Read Replies (2) of 10309
 
Let's play with the numbers.

Assumptions:

WIND grows operating margins to 20% by 2/1/02.
WIND grows revenues 37% this year and 37% next year.
WIND has 75 million fully diluted shares at the end of fy 2003.

Based on information from the 8k, then I get the following results...

Revenues = 316mm x 1.37^2 = 593mm
Profits = 20% or 118.6mm
Trailing 12 month EPS would then be 1.58

Pick your trailing 12 month p/e ratio as of 2/1/02

At p/e 50 you get a stock price of 80
At p/e 65 you get a stock price of 102
At p/e 75 you get a stock price of 118

Thoughts, comments, corrections to my simple logic???
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