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

To: F. Foos who wrote (4098)	1/25/1999 7:31:00 PM
From: Snowshoe	Read Replies (2) \| Respond to of 10309

According to TheStreet.com, the H&Q analyst was Matt Belkin, not Sheila Ennis. Sorry for the confusion. H&Q suspended WIND coverage this morning (Monday), but was able to finally talk to WIND management later today... Wind River Cascades in Silence By Medora Lee Senior News Editor 1/25/99 7:00 PM ET SAN FRANCISCO - What's going on at Wind River (WIND:Nasdaq)? If anyone knows, tell Wall Street. Since Lehman Bros. analyst Mike Stanek issued a research note Friday that prompted a 35% plummet in the stock's value, the Alameda, Calif.-based company seems to have cut off communication to the outside world. After speaking to Wind River's CFO Richard Kraber in a routine call on Friday morning, Stanek wrote that the company -- which helps firms develop embedded software -- would see a slowdown in its revenue growth rate in fiscal year 2000. Stanek, whose firm has no underwriting relationship with Wind River, maintained his buy rating on the stock and left his estimates unchanged, saying that the company would likely meet Wall Street's 29-cents-per-share consensus forecast for the fourth-quarter ending Jan. 31. The company says it will report fourth-quarter earnings on Feb. 25. But investors, accustomed to 40%-plus growth rates from Wind River, honed in on the prospects of slower growth, sold off the stock and sparked a flurry of phone calls for more information. Around 1 p.m. EST on Friday, Wind River's stock was trading above 46, then it went over a waterfall after Stanek's report began to circulate. By 1:30 p.m., the stock was trading at 30 1/4 before recovering a small bit of ground to close at 32 3/16. Most annoying to analysts was that the company didn't seem interested in talking to them after talking to Stanek. "That epitomizes selective disclosure because [Stanek's] customers got a huge head start," says Matt Belkin, an analyst at Hambrecht & Quist, a firm that helped take Wind River public in 1993 and participated in a secondary offering. Despite Belkin's best efforts on Friday, Wind River wouldn't return his phone calls. Belkin told TSC on Friday that all H&Q's estimates and ratings on Wind River remained unchanged. Later that day, he said the firm was reviewing its rating due to the lack of response from the company. On Monday, H&Q went further, suspending its rating. Until Wind River offered the investment bank more information, underwriters would not carry a rating for the software company. Wind River issued a press release on its Web site after the market closed Friday, saying the company expects fourth-quarter revenues between $37 million and $39 million and profit between 27 and 30 cents, compared with revenues of $28 million and a loss of 28 cents in the year-ago period. The statement quoted Kraber as saying "while we cannot predict with any certainty whether our events will meet or exceed expectations, we do not anticipate another solid quarter of results and remain confident as to our prospects for fiscal 2000." After repeated calls by TSC, Kraber declined to offer any comment. Belkin did get through to the company on Monday but heard little. "We finally spoke this morning and it was a sort of mellow conversation -- more of a courtesy call," Belkin says. "The company still isn't saying anything. There's no new news because it won't disclose anything until it reports earnings. They're standing by the press release and aren't saying anything as part of a newly indoctrinated policy to Wall Street." On Monday, Wind River rebounded in the wake of the company's press release, rising 9% to 35. But the stock is still down 24% from its level before the Lehman report. Why would Wind River alienate its investors and Wall Street this way? "I don't want to speculate on why, but it really inhibits our ability to cover the stock and render an opinion," Belkin says.

To: F. Foos who wrote (4098)	1/25/1999 8:04:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 10309

Wind River Rises 8.7% as It Allays 4th-Qtr Concerns (Update1) Foos: Great I knew I could count on you for some intelligent input,much obliged for the time and thoughts. I agree with you, nothing like a sell off to pick up some good stock,I am also a great believer,pronent and practioner of this concept,easy money if you ask me.It worked majority of the times for me. I am really surprised at the market behavior with respect to WIND on Friday,after all they said they will make $0.27 to $0.30 for the quarter,it is not like the bottom has fallen off or anything,sheesh. Also do note that Sheila woman from HQ doesn't appear to have suspended coverage of the company indefinitely she just suspended her 'rating' on the company for the time being I am sure due to the confusion that was injected into the market place buy the imbecile from Lehman (well wait a minute,actually I think he did some of us a favor so he couldn't be all that bad.<vbg>),she will most likely wait until after the earnings release to resume her rating again,so there that is not all that bad. Now here is something I just came across on Bloomberg,looks good to me. =============================== Wind River Rises 8.7% as It Allays 4th-Qtr Concerns (Update1) (Updates with closing stock price.) Alameda, California, Jan. 25 (Bloomberg) -- Wind River Systems Inc. shares rose 8.7 percent after the maker of software for consumer electronics allayed investor concerns that fiscal fourth-quarter earnings would fall short of forecasts. Wind River rose 2 13/16 to 35, or 8.7 percent, in trading of 3.86 million, more than nine times the three-month daily average. The company's shares slid 35 percent on Friday amid concern that profit in the period ending Jan. 31 would fall short of 29 cents a share, the average estimate of five analysts polled by First Call Corp. Wind River said late Friday that it expects earnings of 27 cents to 30 cents for the quarter. ''People may be inclined to believe the drop Friday was overdone,'' said Sheila Ennis, an analyst at Hambrecht & Quist. Ennis added that the increase in shares today is small when compared with Friday's loss. Alameda, California-based Wind River also said it expects fourth-quarter revenue of $37 million to $39 million. It expects revenue of $128 million to $130 million and earnings of 89 cents to 92 cents a share for fiscal 1999. The company is expected to earn 91 cents a share for the fiscal year, according to First Call. Friday's plunge came after Lehman Brothers Inc. analyst Michael Stanek warned his clients that the company's earnings could be less than expected. Ennis said Wind River has declined to discuss the matter and won't communicate with analysts before it reports earnings Feb. 25. ''I've suspended my rating,'' she said, ''based on the fact that the company has gone completely quiet.'' Wind River Chief Financial Officer Richard Kraber said the company is in its self-imposed quiet period until its earnings report. Kraber declined to comment on whether he talked to analysts on Friday. ''We're not quite sure'' what happened to the stock on Friday, Kraber said. ''Over time we'll sort it out.''