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

To: Srivaths Srinivasan who wrote (2678)	1/15/1998 11:50:00 PM
From: mac	Read Replies (1) \| Respond to of 10309

Suppose you were an engineering manager and you wanted to develop a software graphics package like Navio. Ok. You need 6-10 SW Engineers. Maybe it will take you 1-2 yrs to develop. Right there you're up to $2-$3 million. Even at that price you're not guaranteed success. Software may never work properly. People may not like it. It may be too late to market. Suppose, now, you were contacted by your Guardian Angel and you were told that you were GUARANTEED success. It WILL work. GUARANTEED. Now how much more would you be willing to pay for it? (Personally I'd be willing to double my investment to assure success. Now we're at $6 Million. ) Suppose, now, that the main Guardian Angel in charge came along and told you that instead of 1-2 years 'til completion, he would offer it to you RIGHT NOW. Given how much you need this product, and how much revenue you think it would generate in the next 1-2 years.. (or forever miss the boat) then how much more of a premium would you pay? (Double it again?) In addition, given that you would have a hard time even FINDING 6-10 top SW Engineers right now in the SF area...now what would you pay? (Even the Guardian Angel can't help you here, mate:) $10 million isn't too bad after all. May even be quite a bargain, actually. With regards to the next quarter's reported results, note the following quote from the business wire regarding Sun's latest earnings (Sun had a charge related to acquisitions). And then remember that the only thing short term investors/traders care about is the relationship of the actual earning to the estimate.. (well.. I care as well:) "The second fiscal quarter earnings per share excluding the one-time charges were 57 cents -- three cents above Wall Street's consensus estimate according to First Call." mac :)