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Strategies & Market Trends : Sharck Soup

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To: Sharck who started this subject4/26/2001 7:44:12 PM
From: besttrader  Read Replies (2) of 37746
 
What do you guys think of SCMR as a swing trade? ->

APRIL 26, 2001
PREVIOUS NEWS ANALYSIS

Sycamore: Good News in the Offing?

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Rumor du jour:

Sycamore Networks Inc. (Nasdaq: SCMR - message board) is working on a big deal with Japan’s NTT Corp. that could come to fruition in the next few weeks.

This information comes from a previously reliable source, although at press time it wasn't clear whether the source is a Sycamore shareholder or not. Sycamore itself declines to comment.

If the rumor proves to be true, it would give Sycamore a much needed boost. Some of its other contracts, notably with Williams Communications Group (NYSE: WCG - message board) and 360networks Inc. (Nasdaq: TSIX - message board; Toronto: TSX.TO), appear to be going sour (see Sycamore Drops a Bomb ).

Industry observers are skeptical about the rumor, pointing out that Sycamore has had more success selling equipment to startup carriers laying new fiber and not using Sonet/SDH, like Sweden's Utfors. NTT is likely to be at the opposite end of the scale, with massive amounts of older fiber and existing SDH infrastructure.
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