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

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To: Brian Lin who wrote (377)11/20/1996 8:01:00 PM
From: Jim Privat   of 10309
 
Hi Brian,

First thing, while Wind River's P/E is fairly high, I believe the numbers
you have are a bit off (perhaps yours are based on the 4 quarters *before* yesterday's
Q3 earnings came out). I show the last four quarter's EPS is a total of 0.54,
which makes for a P/E of around 88 at today's close of about 48.

As for "isn't it too expensive?", I guess that's open for interpretation.
For one perspective that says it isn't too expensive, read Allen Benn's posts
in this thread over the last few months. Very detailed, insightful explanations
of why Wind River's future looks bright.

Personally, I feel that while the high P/E will probably make for some short-term
volatility, long-term WIND has the capability to sustain strong earnings
growth for quite some time, so I feel comfortable holding onto my shares. Unless
something changes substantially, I hope to hold onto them for quite some
time (like years).

Regards,

Jim
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