Nancy: WIND Alert: a re-evaluation...When I gave you my last analysis of WIND, I thought I might have given it a more 'negative outlook' than it deserved... I've quite changed my mind..This is a perfect company that meets the profile of a "hot options of a booming company"
I've always thought of this stock as a very high growth company, it's just that sometimes these high P/E's can collapse on earnings report... Anyhow my new re-evaluation of WIND..
WIND...EPS of 95 and Rel Str of 95 is ranked #2 in the sector computer-Integrated system...Earnings have topped analysts' expectaitons for 13-straight quarters.. Profit margins are growing 25% a year... NASA turned to WIND WxWorkds operating system software si in the Mars Pathfinder space project.
AT&T IB, LM and toyota are other customers that have helped WIND become one of the worlds leading developers of softwarefor integrated circuit chips...
EARNINGS GROWTH RATE:
1998 estimates +41%
1996-1997 + 81%
1993-1997 +44%
1995-1997 = +166%
Develops realtime operating systems and software development tools for ceating realtime and embedded applications enabling customers to enhance product performance, standardize designs across projects and reduce R & D costs and shorten prodcut development lifecycles, flagship is Tornado.
This year, WIND introduced an embedded sofware product that will link many electronic devices directly to the Internet. the chop, build inot a printer or a building terhmosstat, will have its own Internet address.. then the device can be remotely controlled from the user's computer, where it is.
The company also makes development tools used by chipmakers to make high-end embedded microprocessors.. these tools, combine with operating system VxWorks, form the company's core product. TORNADO.
Embedded microprocessors are hidden in many everyday things: anti-lock grakes, camcorders, phones, fax machines and copiers.. they account for 905 of all computer chips now in use... VxWorks is an operating system, like Microsoft Windows. But it's "thousands of times faster and much smaller" becasue it takes up less space than the standard operating systems stored in personal computers...
Anaylst expect sales of embedded microprocessors will double every year for the next four years...
VxWorks embedded software helped control Pathfinder's flight and landing on Mars. It also speeds pathfinder's messages back to earth..
In June, WIND became the first company to providde embedeed technolgoy for the Internet. as part of its basic Torando product. This will greatly increase the capabilities of browsers, servers and the rest of the Internet's infrastructure...
A new version of Tronddo for Embedded Internet will be released this fall.
We believe the company addresses a very exciting market aopportunity, is working with many of the most innovative companies in the workd, and is cexecutinv gwell on its hight growth, said an analyst at Hambrecht & Quist..
TECHNICAL ANALYSIS:
WIND is trading above the 200 day, 50 day moving average..
Accumulation/distribution rating +64.
Annual net margin =28.1%
BETA a whopping 3.14 (thats where my area of concern was in my last post, that and the high PE)
WRS has no long term debt.
I'm see this as good a prospect as ORBKF... |
