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

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To: Stephen M. Neal who wrote (37)4/20/1996 2:44:00 AM
From: Lucas Hsu   of 10309
 
If you look at the chart you will see that it bounces off the
uptrend line nicely as expected.

Here is a question for you and Allen regarding the valuations of
WIND. Last quarter both the top and bottom line grew at approximately
35%. This suggests to me that growth is slowing. With the current PE
of 60, one might even say that WIND is over-valued. Comments?

Incidentally, I am NOT trying to talk the stock down. On the contary
I am currently long 500 shares. And would invest more if I can be
convinced that the future growth of this company with accelerate.

By the way Allen, I have read your posts on the potential explosive
growth that might arise out of the various deals with Intel/HP.
Very insightful, and would be great for WIND if it pans out.

Oh, and WIND will report earnings the week of May 16th. First Call
estimate is that WIND will earn $0.13 versus $0.07 in Q1 1995. That
is a hefty 86% growth they are expecting. At the moment the rating
on WIND is 1.0 <-- this means all (2 actually) analysts rates it
a buy.

Best of luck to us all,

Lucas
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