Sorrento Network Coverage Initiated By Robert W. Baird & Co.
The research report was issued on July 18, 2001. Here are some interesting excerpt:
"We are initiating coverage of Sorrento Networks with Market Perform, Speculative Risk rating and a price target of $12. Our rating is based upon an outstanding issue with its preferred shareholders, which we describe in further detail in the Risks section. The company also needs to raise additional funds to continue operations. Furthermore, the financing issues may be impacting current orders with customers. Once these issues are resolved, we would become
more aggressive on the stock."
"We recommend any aggressive and speculative investors to begin establishing a position in Sorrento’s stock given its
current valuation and the potential significant near-term upside. Once the Preferred shareholder issue is resolved and balance sheet improved, we would be much more aggressive with the company, which we believe is within the next two weeks."
"Metro Focus. San Diego-based Sorrento Networks addresses the networking needs of the metropolitan core and access in delivering bandwidth needs of the end user. RHK estimates the market for global metropolitan DWDM to grow from approximately $1 billion in 2000 to approximately $4.3 billion in 2004 representing a CAGR of 44.0%. Sorrento provides end-to-end metropolitan optical networking solutions from access, transport, switching, and management solutions for metropolitan carriers. Sorrento Networks is one of the two pure-play metro optical networking companies along with ONI Systems. Other competitors in the space include Ciena, Nortel, Lucent, Sycamore and Tellabs (TLAB-16.24)1. Sorrento has one of the most comprehensive product lines in this universe."
"Targeting the World-Class Carriers. Sorrento Networks is focused on supplying its products to a broad array of telecom players including carriers such as traditional RBOCs/PTTs and utility companies, as well as service providers such as the MSOs, CLECs, and storage-networking companies. The company is currently in field trials with three carrier-class customers and we believe a contract announcement should result within a couple of months, once financial issues are resolved."
"Our checks with several of Sorrento’s customers confirm the exceptional performance characteristics of the Sorrento products. Every customer we contacted initially trialed multiple vendors including Nortel, Ciena, ONI, among others and chose Sorrento’s metro solution based upon superior performance, ease of installation and use, and customer service as well as the best price for functionality. We are confident that Sorrento’s end-to-end solution for the metropolitan opticalnetworking sector is second to none and should continue to gain additional customer wins going forward."
Someone on Yahoo board claims to have a link to the full report:
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