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Technology Stocks : Wind River going up, up, up!
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To: Mark Brophy who wrote (1109)5/22/1997 9:30:00 PM
From: Richard Forsythe   of 10309
 
Err, Mark, I'm no bond expert, but wouldn't a 10% bond return 10% each year on the original investment? I.e., investing $32 on a 10% bond would return $3.20 per year and $32 at the end of twenty?

I make that a total return (assuming no inflation, although where you get a 20 year government bond payong 10% from without inflation I don't know) of $64 in coupon and $32 capital giving $96 inflated dollars at the end of the life.

Compare WIND which generates $15.76 in 2016 and using a PE of 6, you could sell shares for $95. Remember that this is inflation PROOF because WINDs earnings would inflate in line with the currency. So at the very least, WIND is returning more than a 10% bond due to inflation issues.

Anyone care to comment?

Richard
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