Some info for folks who like AVNX.
From thestreet.com:
Avanex, based in Fremont, Calif., makes tiny photonic processors used in networking equipment.
"The implications for the numbers being paid for the stock are staggering," said Kevin Slocum, an analyst at Wit SoundView, who said his firm unsuccessfully sought the investment banking business of Avanex.
"They did an extraordinary job of positioning their company," he said. "The company described themselves as the next-generation supplier to the optic network, likening themselves somewhat to Intel(INTC:Nasdaq), which has carved out the high ground in the microprocessor market.
"They have two products that are expected to do really well," Slocum added. "But it would be a mistake to say that this company will change the landscape of the sector."
Slocum was referring to PowerMux, an Avanex product that lets network operators increase bandwidth for sending more data, and PowerShaper, which helps fix the signal interference that is created when transmitting light at faster speeds.
Slocum follows JDS Uniphase(JDSU:Nasdaq), another company in the fiber-optic market. No firms have formally begun coverage of Avanex.
Avanex and its lead underwriter, Morgan Stanley Dean Witter, garnered $216 million on the sale of 6 million shares for $36 apiece. Premarket demand for the fiber-optic component-maker was so strong that its initial offering price was raised 220% from a midrange of $14. In December, the company had hoped to garner just $96.6 million from the offering.
But there were more big winners before the trading had even started, as Microsoft(MSFT:NYSE) and MCI WorldCom(WCOM:Nasdaq) each garnered about $61.1 million from the IPO by investing in $5 million worth of shares for $13 apiece, according to an Avanex filing with the Securities and Exchange Commission.
Some researchers are saying the market for Avanex's products could reach $21.3 billion by 2003, from $5.5 billion in 1999.
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