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: noel berge who wrote (1107)5/22/1997 6:37:00 PM
From: Jim Privat   of 10309
 
Hi Noel,

Can you elaborate on what the Fools said about the conference call?

Don't know if the following has anything to do with it, but the Fools
like to determine whether a stock is overpriced or underpriced by
dividing its current PE ratio by its projected future annual earnings growth
rate (they call the result the PEG ratio). Anything under 1 in their book is
a good value, anything over 1 is pricy (assuming other fundamentals are
sound).

On this basis, they would view WIND as overpriced (PE ~75 divided by
published projected earnings growth rates of what, 35%??. Anyway, PEG well
over 1).

Of course, many here would argue with this way of determining that WIND
is overpriced, but I wouldn't be surprised if any negative comments from
the Fools about WIND are based on their PEG ratio calcs.

Personally, I'm still happy to be holding onto my shares today, regardless
of the drop.

Regards,

Jim
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext