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

To: Mkilloran who wrote (3498)	8/5/1998 7:28:00 AM
From: Allen Benn	Read Replies (3) \| Respond to of 10309

what's your take on IBM's new process to speedup chips and it's impact to Wind River I2O use in these faster processors. It's all part of inevitable shift from the PC paradigm to the emerging paradigm of ubiquitous, hidden computing. WIND is the leader of the new paradigm, so IBM's progress is yet one more favorable TRADE breeze in WIND's SALES. (Thanks to Carolyn.) For the first time over the last year or so, I feel that analysts are picking up on WIND's feats and opportunities. With CS First Boston starting WIND with a Strong Buy, according to First Call, there are once more five analysts following the company (USB out and CS First Boston in). Four rate WIND a Strong Buy, and, by my calculation, only H&Q still at just a Buy. Amazingly, the average estimate for the 3 to 5 year EPS growth rate is over 49%. These analyst carry a lot of weight with institutional investors, so expect the stock to advance smartly and be a leader coming out of the correction. If WIND meets the analysts' estimates over the next five years, a rational investor would be indifferent between buying a Treasury bond and buying shares in WIND at $465 each, or buying KO at $87. However, since seasoned investors never buy at bond rates, the rational investor would never pay more than $43.50 for KO (assuming the strong dollar doesn't cause much continuing harm, and that PEP doesn't steal much fountain business). Likewise, I recommend that investors not pay more than $232.50 for WIND - at least not until we find out more about the I2O ramp up or other equaling profitable opportunities that may be announced. Allen PS - I know this sounds like a joke, but the numbers are real. PPS - I am off trekking for a month, and probably won't have an opportunity to check in until mid-September. Good luck.