Redback Networks, Inc. (RBAK) Message Board

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Technology Stocks : Redback Networks, Inc. (RBAK)

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To: Bo Le who wrote (1633)	3/3/2001 8:37:50 AM
From: Dave	Read Replies (1) of 1956

Bo, First of all, where are u getting your number of $35 Book Value? Book Value is not a good indicator of evaluating a tech stock. Many technology companies have "intangible" assets that are not carried on their B/S, or not carried at the market value, instead those "intangible" assets are carried at cost. For example, when a company files for patents and they are granted, those patents are on the B/S at their cost. Not their market value. Intel received a patent in 88 or 89 called the Crawford patent which detailed a microprocessor with internal cache. How much do u think that patent is worth? Intel patented their architecture, thus forcing their competitors to develop their own architecture. HOw much is that worth? IMO, both redback and extreme will be victims of this decline. Now, everyone is talking about a recovery in 02. Remember when the recovery was going to be 2H01? IMO, Redback will have to reduce their estimates, therefore, causing their stock to decline further. Here's something from On24 basically summarizing the Light Reading article on Redback... biz.yahoo.com

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