Here's the long Dow article I referenced in previous post. Re-posted from Yahoo message board ( have to sort thru alot of garbage/short FUD to get to useful posts):
DowJones article: just rumors and fears
by: yeah_yeah_been_there
9/27/00 6:40 pm
Msg: 42643 of 42797
Sept 27th 2000
Copper Mountain Down 20% On Jitters About
Future Demand
Dow Jones Newswires
By Janet Whitman
Of DOW JONES NEWSWIRES
NEW YORK -- Shares of Copper Mountain Networks Inc. (CMTN)
plunged in heavy volume late Wednesday amid fears that demand for
the telecom equipment maker's products will slow.
Copper Mountain's exposure to the troubled competitive local
exchange carriers, or CLEC, sector helped fuel the selloff, analysts
said.
The stock's slide also was part of a broader selloff among telecom
equipment companies as investors remained jittery about the
possibility that telecom service providers will spend less on equipment
next year.
Shares slid 21.6%, or $10.63 to close 4 p.m. trading at $38.63 on a
hefty 12.9 million shares, up from average daily volume of 3.1 million.
Shares traded as low as $37.38 earlier.
The Palo Alto company, develops and sells digital-subscriber-line, or
DSL, equipment to telecom companies and Internet service providers.
"There are a lot of pretty weak DSL (service) companies out there,"
said Fredrik Tjernstrom, an analyst at Hidden Asset Report.
Investors fear that some of those companies may go out of business
or scale back their expansion plans because of the limited access to
capital, which could result in less demand for Copper Mountain's
products.
Tjernstrom noted, however, that two of Copper Mountain's customers
- Covad Communications Group Inc. (COVD) and NorthPoint
Communications Group Inc. (NPNT) - received significant
investments recently from Bell operators, indicating that those CLECs
are healthy and that equipment demand should remain robust.
"There shouldn't be concern about these companies going out of
business," said Tjernstrom.
Another concern weighing on Copper Mountain is the likelihood that
some telecom companies will buy less equipment next year.
"There's worry about which companies will be affected," said
Tjernstrom. "I don't think DSL should be affected that much."
"This year, growth is going so fast, they can't supply enough products
to keep up with demand," he added. "It's hard to say where it will
bottom out."
Copper Mountain could not immediately be reached for comment.
-Janet Whitman, Dow Jones Newswires; 201-938-5248;
janet.whitman@dowjones.com |
