Extreme Networks, Inc. (EXTR) Message Board

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Technology Stocks : Extreme Networks, Inc. (EXTR)

EXTR 17.50

+0.1%

Nov 26 3:59 PM EST

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To: minorejoy2000 who wrote (480)	12/24/2000 2:38:25 PM
From: A.L. Reagan	Read Replies (2) of 770

Well you are right about the classic double top reached in mid-October just b/4 the earnings. On the way back down, there are some gaps that may provide some resistance on the way back up. GigE has some advantages in a slowing IT/telecom spending environment in that it tends to be a lower cost solution than traditional (e.g. SONET) topologies. As the world inexorably moves to more thin client computing models, the need for networks to add the smarts increases. Stocks like EXTR in this environment mostly moved by pyschology. In the short run, sales growth will slow down as few are immune to general slowdowns in corp and SP capex. However, when one considers the comms/computing gamet running from fat PC's up to long haul optics, it seems to me the product and price point areas EXTR plays in are among the least susceptible to prolonged sales doldrums. So there sure could be more churning, but unless one subscribes to "the coming market crash of 2001" school of thought, hard to see big long-term downsides here. EXTR is a long, long way from hitting the P/E shrinking roadblocks of large numbers or overwhelming market share. That being said, prudent holders need to know when to hit the sell button the next time valuation metrics on EXTR get wacky.

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