Being that THURSDAY CORV has earnings, here's a CORV info post -->
12-Apr-01 14:55 ET Corvis (CORV) 8.17 +1.42 (+21%): -- Update -- CIBC analyst believes that there will be
upside to Corvis numbers when the company reports on Apr 26; says BRW and WCG have been strong and
Qwest (Q) has been surprisingly above expectations; CIBC had included Qwest in its Q3 estimates but
believes some Qwest orders may be seen in the June qtr.
12-Apr-01
07:34 ET Corvis (CORV) 6.75: Light Reading reporting that Corvis has leased new facilities for its work
on a new grooming switch; this would be a high port count optical switch with an electrical switching fabric
that competes with Ciena's (CIEN) CoreDirector product. Corvis's current switch is all-optical with a small
port count and targets a different market.
09-Apr-01
Corvis (CORV) 6.90 +0.87: This optical networking stock is enjoying a rare positive day as the Gilder Report shows that it has not completely lost its influence. Corvis
was added to the Gilder list and is enjoying a modest boost as a result. For the uninitiated, George Gilder's Technology Report covers the optical sector, and being added
to the "list" had the potential to lift a stock 20, 30, or even 40% back in the bubble days. Now, with many members of the list down by 50-90%, the Gilder effect just
ain't what it used to be. For those considering CORV, the good news is that Gilder added this stock after the 90% plunge rather than before. And there is good reason
to consider Corvis. The telecom equipment segment has been decimated by the reduction in capex by telecom service providers. To some extent, companies like Corvis
whose next-generation gear can reduce network costs are insulated, as their products are most likely to survive in a more selective capex environment. But as
Sycamore (SCMR) shareholders learned last week, much of this next-gen gear is sold to emerging carriers that are simply running out of money -- it doesn't matter
what you sell if your customers don't have any funds. Corvis currently has contracts with Williams (WCG), Qwest (Q), and Broadwing (BRW). The bad news here is
obvious: customer concentration. This is also the good news, as none of these companies is in financial jeopardy. There have always been two knocks on Corvis, and
they are very much connected. First, the company is extremely secretive about its technology, generating skepticism about some of its claims. Second, all three
customers own shares in the company, calling into question their objectivity in assessing CORV's technology. Because of these issues, adding customers has been and
continues to be a critical factor for Corvis. Rumors of one or two new customers have been heard for several weeks, but still there is silence at Corvis. If the Corvis
claims are true, its transport and optical switching products can dramatically reduce network costs, and it would be unwise to bet against any company that can quickly
and significantly reduce costs for service providers, particularly when that company targets Tier 1 customers rather than emerging carriers. The key for Corvis is
attracting more customers so that the "if" at the beginning of that sentence can be removed. Being added to the Gilder list today was a nice bonus for Corvis
shareholders, but being added to the vendor lists at a few more prominent service providers would be a much better reason to buy the stock.
05-Apr-01
Day Trader (OPENX) : If this rally is for real, we will soon see investors and traders begin to move to the bottom of the market in search of bargains. We are not
talking about companies that have seen their fundamentals bottom; these names will catch the eye of investors based on their discounted prices relative to former
levels, high short interest ratios, and visibility as former momentum stocks. In light of the carnage witnessed over the past year, and especially the past two months, it
is hard to imagine that anyone would go near these second-drawer stocks. However, the reality is that traders and aggressive investors are always looking for an
edge. After the initial advance in bellwether names such as Cisco, JDS Uniphase, and Sun Micro, the direction these issues will take will be anybody's guess.. But if
these market leaders do continue to move higher, the rising tide will even begin to lift some of the market's dinghies. The stocks highlighted below certainly do not fall
into that class; but, then again, they aren't Microsoft either.-- Damon Southward Briefing.com
Company
Forward P/E
52-Week
Range
Short Interest
Float
Near Term
Resistance
Corvis (CORV 5 7/8)
147
$4.69-$114.75
7.3 mln
171.4 mln
$6
Finisar (FNSR 7 5/16)
29
$6.34-$51.25
3.7 mln
126.7 mln
$7 15/16
Numerical Tech (NMTC 8 9/16)
48
$7.88-$67.31
1 mln
18.5 mln
$10
Silicon Labs (SLAB 18)
27
$10.12-$102.75
2.2 mln
15.9 mln
$19
Sycamore (SCMR 8 7/8)
28
$7.06-$172.50
5.9 mln
163 mln
$9.25
27-Mar-01
00:05 ET Corvis (CORV) 8 1/32: Optical networking site Light Reading reporting that sources close to
CORV have confirmed that the company will announce "at least two" new customers as early as the next
few weeks. Corvis currently has only three customers (WCG, Q, BRW), all of which own stock in the
company, making additional customer wins key. |
