Redback Networks, Inc. (RBAK) Message Board

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Technology Stocks : Redback Networks, Inc. (RBAK)

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To: Wizard who wrote (1190)	10/13/1999 10:32:00 PM
From: incomep	Read Replies (2) of 1956

Dear Mr. Wizard: The full diluted shares after conversion are now 80 millions from current 37 million. That put RBAK market cap over $10,000,000,000 with today's close price at $135/share. With revenue only 40,000,000/year, it is going to take RBAK 250 years to produce 10 billion revenue. It better to grow its revenue 300% per year for the next 5 years to catch up this valuation. With large competitors as NT, CSCO, and small competitors like CMTN and MRVC all come with the similar products, we'll see the margin erode quickly. And it is almost impossible to keep this growth rate. If it drops to 50% growth rate for the next 5 years, then you will see the stock is going to visit $20/share in a year if RBAK does not comes out new trick. This is just my opinion. And I am a seller at this price level. IP

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