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Technology Stocks : Wind River Systems - Technical Analysis -- Ignore unavailable to you. Want to Upgrade?

To: carolyn walder who wrote (152)	3/3/1998 11:17:00 PM
From: Mitchell Jones	Read Replies (1) \| Respond to of 431

I don't attach a great deal of importance to the last couple of days (today was not all bad,by the way--from a short term technical viewpoint). I expressed the view, some time ago, that WIND was adjusting to a new growth rate in earnings. I still believe that, only I now believe that adjustment is complete. WIND has grown revenues at a 45% rate for a long time, but earnings were growing much more rapidly at 75%.For reasons that don't really belong on the technical thread, earnings are now growing at a 45% rate also and ,quite fairly, the market has set about to adjust the risk to more nearly equal that performance; hence, WIND's premium has been dropping.Analysts are predicting $0.86/share for this year and Ron Abelmann has said he is comfortable with that. Assuming WIND only betters that by $.02/quarter (Ron's comfort level), we will earn $.94/share. At $37.00/share,,WIND is selling at only 39x next years' earnings. In other words, WIND is on sale and the market doesn't really have sales at this point in time. From a technical perspective,WIND is still above the resistance line it broke a few days ago (the line functioned as support today as it should have). We should be moving into the low to mid $40s soon and back on the path to obscene wealth WIND promises the faithful. Mitch