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

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To: Mark Brophy who wrote (2847)3/6/1998 12:36:00 PM
From: Bargain Hunter  Read Replies (2) of 10309
 
The sad reality is that the company has been skimping on R&D for the past 3 years in order to maximize reported profits. If the company were honest, they'd amortize the $14m over the past 3 years and admit that they've been growing operating profits at 30% rather than 45%.

There are two ways to explain the purchase. One is that the company did, indeed, skimp on R&D and needed to play catch-up. The other is that they saw an opportunity to expand the scope of the business by buying some useful technology. You appear to have concluded that the former is the correct interpretation but have not explained why. Would you care to provide your reasoning so that we can decide whether we agree with you?
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