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

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To: dylan murphy who wrote (2129)9/25/1997 1:04:00 PM
From: Richard Karpel   of 10309
 
If you believe that embedded computers are the next wave of computing, and that WIND is destined to be the market leader in providing the operating system and development tools for the embedded computer industry, then you're willing to pay a higher price for the company's stock.

Lots of people believe, and that's why the P/E and price-to-sales ratios are so high.

Last time I looked, WIND's market cap was around $1 billion. If the market cap in ten years is $50 billion, does that mean the price of the stock today is grossly cheap?

Obviously, no one knows for sure whether the price of the stock will increase 50-fold in ten years, but there are quite a few investors who are willing to assume the risk of WIND's high P/E and price-to-sales to profit from the company's huge upside potential.
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