FIRST OF ALL #DAYTRADERS SUCK,,BUNCH OF KIDDIES THERE WITH NO CLUE
REDB,,,IS RIPE FOR A TAKEOVER BUT ORCL WOULD NOT WANT THEM,,,,SOMEONE WOULD,,,ANY GUESSES,,,,,THIS BABY LOOKS LIKE A BUYOUT CAND,,,CHECK OPTIONS,,HUGE VOLUME,,,,WE COULD IN EARLY FOR THE RUN UP TO 15
PAIR,,,,LOOKING GOOD TO 24....LA TIME ARTICLE OUT 5-17
Nothing new...but some info.NEW YORK -(Dow Jones)- Shares of communications-technology concern PairGain Technologies Inc. fell sharply Friday but there was no apparent news to explain the drop.
The Tustin, Calif., company is among a group of companies working on asymetric digital subscriber line, or ADSL, technology to increase the data-carrying capacity of traditional copper telephone wires.
In composite trading Friday, Nasdaq-listed shares of PairGain ended down $3.875, or 18.3%, at $17.25 in unusually heavy trading. Rumors in recent weeks of a big ADSL contract from a phone company have made stocks of ADSL companies volatile.
Stocks of ADSL firms have traded at lofty price/earnings ratios, meaning any hint of a disappointment triggers a selloff among so-called momentum investors.
Most of the buzz surrounding ADSL has been in regard to the technology's promised ability to speed up the delivery of Internet information by increasing the data-carrying capacity of traditional telephone wires.
Some of the Baby Bell telephone companies plan to start rolling out ADSL-based modem services later this year as a direct challenge to cable television companies that aim to offer high-speed Internet access based on cable lines. ADSL promises to let customers download Internet pages as much as 50 times faster than normal modems.
Shares of ADSL firms have also lost ground in recent months partly on fears that telecom-equipment heavyweights could steal the the lead in the nascent market by selling products substantially below cost. Motorola Inc. and Northern Telecom Ltd. have said they will compete for ADSL business.
Last month, investors speculated that Amati Communications Corp. and Westell Technologies Inc., both working on ADSL technology, might be close to a pact with a big phone company.
Shares of PairGain fell last month after investors grew alarmed at the the fact that the company shipped more products than usual in the last month of the first quarter. PairGain reported first-quarter earnings, excluding accounting charges, of $14 million, or 19 cents a share, compared with $6.2 million, or nine cents a share, in the year-earlier period. Revenue soared 75% to $70.7 million.
PairGain in February agreed to buy Avidia Systems Inc. for about $94 million in stock to boost its technology. Avidia makes digital switching equipment that allows home and office telephone lines to accept high-speed transmissions from powerful networks. In addition to the switching equipment, called multiplexers, Avidia produces network products that deliver video images to computers and specializes in Asynchronous Transfer Mode, or ATM, technology.
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