I've discovered a small copper play: Pliant Systems, formerly Broadband Technologies. Actually, a former Amati follower suggested I take a look and so far I like what I see. Definitely a turn-around situation with lots of potential upside.
From the Pliant thread on Raging Bull:
By: hogans_way
Reply To: None Sunday, 30 Jan 2000 at 2:22 PM EST
Post # of 170
Hogans Notes
Pliant has done a great job in letting the public know exactly WHAT and HOW they are doing and WHEN and WHERE they are headed. This is great news for the small investors as they try and decide what are good investments. Most fund managers of the big brokerage houses stay away from the BB stocks until they are listed and some will not buy companies worth less than 1 billion dollars. This provides even a greater opportunity to buy stocks will great potential at a low price.
If you understand broadband and narrowband technology and where it is headed, then you should feel good about your long term investment in PLNS. It is rare in the stock market today that you can find internet companies like PLNS that are on the verge of exploding in an exploding market and the stock price does not reflect the long term potential. However, that will change in the months ahead. If you are new to PLNS, I will summarize below what I believe are the important points:
- PLNS has the solution to the DSL distance problem to the central office that is limiting the DSL market growth. "According to Orr (president of PLNS), the product (Pliant 3000) will enable carriers to extend DSL services beyond traditional limits to the more than 50% of potential subscribers who are not served by CO-based DSLAMS." Most estimates of DSL deployment do not factor in new technology like the Pliant 3000. Just about every article you read mentions the distance problem with DSL. biz.yahoo.com
- PLNS has been designing the Pliant 3000 for over a year. They have designed the Pliant 3000 to be EXTREMELY flexible. "By offering a full array of narrowband and broadband services, with the ability to migrate from one to the other, the Pliant 3000 will give carriers the flexibility they need in a dynamic market. At the same time, it will help lower networking and operating costs by eliminating the need for parallel voice and data networks," stated Orr. biz.yahoo.com
- PLNS has expertise in fiber optics and has designed fiber into the Pliant 3000. The past few years PLNS has been providing fiber optic product development and manufacturing services for their partners Lucent Technologies and Bosch Telecom (recently merged with Marconi).
pliantsystems.com
- The mergers in the telecom industry can provide a good way of evaluating the value of similar companies. On January 6, 2000 Nortel Networks Acquired Promatory for up to US$778 Million. Promatory announced their DSL product Jan 6, 2000 (PLNS announced Dec.15, 1999) and employs less about 100 people (PLNS has 250 and 20 job openings). The Pliant 3000 not only offers the DSL capabilities of Promatory products but also integrates internet telephony and solves the central office distance problem. This should make PLNS worth more than $778 million compared to the current valuation of $120 million. If there is one good reason to buy and hold PLNS it is the markets evaluation of US$778 Million for Promatory. This is a loud and clear signal for investors that PLNS offers great upside potential.(for full story on merger see the following url thestreet.com )
- News from the Annual Financial Report..."The company has received commitments for field trials of the Pliant 3000 from a competitive local exchange carrier and an independent local exchange carrier. Anticipating successful trials, initial product shipments are projected for third quarter." biz.yahoo.com
- The race for bandwidth deployment is heating up. Everyday there are articles about DSL/Cable Modems/Wireless bandwidth options. All three will compete in the new economy. All three will make money. (see the following article Cable, DSL and wireless vie for market leadership denverpost.com
- The market float (shares available to buy) on PLNS is tiny (aprox 5 Million shares). This is why the stock can drop/gain $0.50 with a trade of only 100 shares. Within the next 9 months, there will be periods where there will be huge swings because the float is so small. You do not want to be out of PLNS when the huge gains occur. It is hard to predict when this will happen but the best bet is to hold on and ride the stock to new highs. It is tempting to get out when the big runs occur but it can be hard to try and time the point to get back in. Just when you are ready to pull the trigger the stock runs and most investors think the stock will drop again letting them in lower. Meanwhile, the stock keeps running and you kick yourself for not being there for the next big run.
- Other than the raging bull, you can find very little discussion on PLNS. This will not last very long and is a huge opportunity for investors to get in on PLNS. (Big stock gains are usually made when you can buy before everyone starts talking up the stock) The major event that will eventually propel the stock price is relisting. That is when major brokerages will begin to nibble for a piece of PLNS. Right now most major brokerage are forbidden to buy BB stocks. After relisting, analyst coverage will begin, everyone will start talking the stock up and PLNS will head higher than anyone on this board can imagine.
The need for greater bandwidth is not going to change. Hopefully, I have given you some very compelling reasons to invest in bandwidth market player PLNS early in the growth cycle and why PLNS will be a winner. PLNS will gain greater exposure when they are relisted. Hold on and have patience. PLNS is heading right into an exploding market and they have been working hard to get there for the last few years.
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