The market almost always gets too excited prior to WIND’s quarterly report. I guess it is "buy on rumor, sell on news". Since WIND did not, and does not, blow the estimates away, investors hoping for huge earnings gains get disappointed and sell. Usually, the analyts go away and decide that things at WIND are just fine, inform their clients, and the stock picks up again after two or three days. This should happen again this time, since the future for WIND is very bright indeed.
I have to emphasize that to the long term investor it simply does not matter. While we are waiting for some of these big ticket deals to materialize, WIND is treading water growing revenue at 40% and earnings at 100%, always slightly beating the estimates. Somehow I can afford to be patient with this level of performance. I calculate that, worst case, the stock price doubles every two years - while we wait.
By the way, did you notice in today’s Investor Business Daily that Intel is concerned about the Pentium chip’s I/O performance under certain circumstances, mainly when the computer is a server? If Microsoft is to successfully push Unix servers out of the way, this kind of problem cannot persist. The obvious solution: Intelligent I/O. In other words, I2O is in both Intel’s and Microsoft’s interest to implement on servers immediately. I cannot imagine a better business situation than being part of the solution of a major problem shared by Intel and Microsoft.
Did you also notice in the newspaper that Siemens struck a global alliance with Newbridge Networks (NN) wherein Siemens will sell NN’s switches, mainly ATM devices? Apparently, Siemens is one of the biggest telecommunications companies around, so this is quite a feather in NN’s cap. I am gratified that WIND has a corporate agreement with NN to use VxWorks in their gadgets.
The future looks good for WIND. |
