Wind River going up, up, up! Message Board

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

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To: william binder who wrote (1132)	5/27/1997 10:11:00 AM
From: Mark Brophy	of 10309

The Motley Fool concurs that this is a trading stock. The motley fool cryptically reported that the price drop in WIND was perhaps secondary to comments made in the recent conference call. Any information regarding this? The company is doing very well, but the stock went down because technical analysts who read charts have decided that the trading range is 18-36 and fundamental performance is irrelevent. The P/E is already so much higher than the growth rate that rational fundamental investors have taken their profits and only technical analysts and dreamers remain. Microsoft doesn't compete with Wind River because the market doesn't have enough potential for them to care about and the Wind River business model is exactly opposite of Microsoft's business model. Consider the following quote from EE Times at techstocks.com "This is quite an amazing opportunity for us-it's mind boggling,'' said Pauline Shulman, product manager at Wind River. "We have a license that puts IxWorks in every I/O processor Intel makes. Right now, that's the i960, but the license is for anything Intel calls an I/O processor." However, the firm will make its money from selling tools, not real-time licenses. Developers who want to work with IxWorks are likely to turn to a new version of the company's Tornado tools suite tailored for I2O. The prospects are mind boggling for a small company like Wind River, but Microsoft knows that the development tools market isn't very large. Microsoft sells development tools for a small profit so that they can make money selling applications and operating platforms to end users. Wind River sells operating platforms to end users via Intel at a small profit so that they can make money selling tools to developers. The really big money is going to be made by Microsoft and Oracle selling Internet applications to end users. Microsoft doubled their profits last quarter mainly by upgrading productivity applications with Internet features. Netscape will also make money if they buy Informix or Novell and can bundle the platform and the applications.

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