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: Peter Church who wrote (10074)	5/14/2002 6:40:07 PM
From: lkj	of 10309

Hi Peter, Sorry for the late reply. Here are my thoughts on each based on quick reviews: MNS At first, I was pleasantly surprised by this fast growing company. Too bad I have zero knowledge of Product Life Cycle software. A few issues with the number: 1) Book values should be (282-199+51)/29 = 4.6, much less than the 9.7 suggested by Yahoo Finance. 2) Huge increase in COGS, especially for "service" revenue. 3) Huge increase in SG&A. Based on 1), it doesn't qualify as a value stock. 2) and 3) are causes for concern. If you take away revenue from "systems", the company had almost no growth. I don't know enough about its business to arrive to any conclusion. INSG: I don't believe that a company can be great based on a JVM. I wouldn't buy it. It claims to be working with TI. I would drill into this relationship, but I doubt it's any thing substantial, since Nokia and Ericy will be running their own software on TI's chipset. This company is still in a startup stage. RHAT: The only part of its business that's still growing is Open Source Service, which is a low margin service business. It's very hard to make money off of Linux. At nearly 3x book value, this is hardly any cheap stock. Best, Khan

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