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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: tekboy who wrote (26748)	6/24/2000 12:59:00 AM
From: KevRupert	Respond to of 54805

Wind/Elon: I received my Value Line tonight. I was surprised to see Echelon & Wind River Systems as newly covered stocks in the newsletter. They are listed in the newly formed "Wirless Networking Industry". Elon: "...Echelon has some 'heavyweights' backing it...Enel has agreed to purchase 3 million shares of newly issued Echelon stock. We think that this is only the beginning, and that other companies will soon follow suit...We believe that ELON's products offer tremendous growth potential, but like most issues, the stock is subject to technological obsolescence." $0 debt 2000 sales = $52 million; 2001 sales = $170 million Wind: "...Wind River is the leading independent provider of operating systems for embedded systems. There is also a movement for a free version of Linux for embedded computing, although this suffers from many of the disadvantages akin to proprietary systems. Wind River has solid growth prospects. Still, the current quotation discounts much of earnings growth (expected @ 27% growth rate) we are calling for out to 2003-2005, since we assume a contraction of the P/E mulitple to a more normal level by then..." $140 Total Debt 2000 Sales = $430 million 2001 = $570 million My opinion of the 2 summaries (since they are discussed frequently on this thread): thumbs up for elon and neutral for wind. Elon appears to be growing much faster, with key alliances. Wind appears to have a weaker balance sheet, slower growth rate, and a less focused product line.