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Technology Stocks : Wind River going up, up, up! -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (5836)	7/12/1999 5:34:00 AM
From: peter grossman	Read Replies (1) \| Respond to of 10309

Here's what Jerry said about TMS: Fiddler said the version of the Tornado software for the telecommunication industry is "on schedule," adding that "nothing has happened that would lead us to change our own internal revenue estimates," for that product. During the run of 20 consecutive quarters beating analysts estimates, I had thought that the company managed expectations so well that a product delay or other slip up inevitably would be overcome by better than expected performance in another area. Perhaps, instead, it was just so well managed that there were no real slip ups. Now we find out that with I2O ramping much slower than expected, a product delay does impact the bottom line, hopefully for only one quarter. I'm not sure that Jerry's response about TMS is any guarantee. On the other hand, he did seem to indicate that guidance to the other analysts remains on target. I think that WIND has focused its moves on gaining market share in the longer term. Lately, it has changed its business model in pricing, in its solution orientation, in vertical product offerings, in adding professional services and partner services to promote post-pc product development. All these recent moves seem strategically advisable in a market poised for big growth. If they can pull off these moves, and still grow earnings at 30 to 40% in the short term, it's hard to see how the stock won't take off. On the other hand, these strategic moves may have a slightly retarding effect on the short term, and Wall Street just doesn't seem willing to cut WIND any slack. Even so, fundamentally WIND is a better buy at 25x trailing earnings and a possible cloud or two than 75x and an unblemished record. And maybe, for once lately, we'll have an upside surprise. Maybe someone will release projected royalty possibilities for any number of design wins.