SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Wind River going up, up, up!
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Allen Benn who wrote (2834)3/5/1998 10:38:00 AM
From: Mitchell Jones  Read Replies (3) of 10309
 
>>(Even Mitchell subscribes to the theory of the market winding down expectations about the NC and I2O, as reflected in revenue growth converging asymptotically to around 40%, and EPS growth decelerating from well above 75% to a last reported 47%.)<<

Actually, I don't subscribe to that theory. I believe earnings margins are dropping because Ron has chosen to make WIND more of a service company and is willing to invest the higher margin royalty and license monies to accomplish that goal;therefore,I don't see an immediate return to the higher margins of the recent past.

It is said that accounting is in the art of the presentation. I openly disagreed with Jason when he expressed concern over misinterpretation of last quarter's charges, feeling that investors were too sophisticated to be confused by one time charges. I failed to think through the full implications of those charges!! Instead of having a few million less in cash and a trailing PE of 60, WIND still has its full cash hoard and a trailing PE of 214!! I fully realize you don't place much importance on trailing PEs, Allen (nor do I, for that matter), but the truth is that Brokers say " What is the PE?" is the first question asked by most clients when discussing a stock. A needless hurdle for WIND to clear when the transaction could have been reported as a charge against cash and the whole issue avoided.

Dick Kraber gets my vote for a slap on the wrist for a blunder in the presentation of this simple transaction-- the first wrist slap I have voted since making my purchase of WIND stock.

Mitch
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News