Wind River going up, up, up! Message Board

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

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To: Allen Benn who wrote (314)	10/30/1996 2:20:00 AM
From: Mitchell Jones	of 10309

What intrinsic value should we assign wind? In Post #27 you asked that question within the framework of 40% to 50% earnings growth/year. In Post # 108 you offered a set of projections for Wind's earnings with growth rates ranging from 50% to 136%. The following are intrinsic values one model assigns to those growth rates given certain other basic data. WARNING: SOME OF THE NUMBERS ARE OBSCENE! DO NOT ALLOW SMALL CHILDREN TO VIEW THEM . The model requires the following inputs: 1. No. of shares outstanding (millions) (15.75) 2. Long term debt (0) 3. Current dividend (0) 4. Networth $/share (2.36) 5. Projected earnings (1.31) 6. Projected avg. earnings growth (see below) 7. Projected avg. sales growth (see below) 8. Current yield of AAA bonds % (7.07) 9. Projected change of AAA bonds % (20) 10.Current earnings $/share (0.67) 11.Current Price in $/share (40.50) 12No. of years earnings growth rate is expected to be sustained. (5) Earnings growth Sales growth Intrinsic value 50% 40% $82.68 60% 50% $129.50 75% 65% $198.58 100% 90% $619.43 125% 115% $1412.73 136% 126% $1973.18 Mitch

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