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

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To: Allen Benn who wrote (3499)8/7/1998 7:31:00 PM
From: Renny Bosch  Read Replies (2) of 10309
 
>> Amazingly, the average estimate for the 3 to 5 year EPS growth rate is over 49%.

<snip>

>> If WIND meets the analysts' estimates over the next five years, a rational investor would be indifferent between buying a Treasury bond and buying shares in WIND at $465 each, or buying KO at $87.

Allen, would this conclusion not depend on whether or not the EPS accurately reflects earnings, including labor costs deferred via options?

I am not saying WIND is doing wrong by awarding options as they do, just that we should be realistic in our assessment of their impact on future earnings per share.

Best regards -- Renny
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