SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : PairGain Technologies
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: stevie ray who wrote (5988)7/3/1997 11:39:00 AM
From: Edward J. Edwards, III   of 36349
 
I agree with you Steve, here is an e-mail I received from an analyst today regarding PAIR:

Subject:
RE: From: edward / Subject: Re: From: edward / Subject: Pair's earning
Date:
03 Jul 1997 10:23 EDT
From:
"ZamkoffErik"
To:


Edward,

PairGain has been dogged in the current quarter by pricing issues with Adtran and slow unit demand in HDSL. Adtran has come out with a lower priced HDSL product yet PAIR is only a few months behind. Since, it takes a Carrier a years worth of R&D to implement a new supplier PAIR has not lost any significant market share. They are the number one supplier at the majority of carriers and will remain so because carriers would rather wait a few months for the lower product from PAIR rather than go through a year of R&D expense to install a product from Adtran.

Unit demand will be a bit slow this quarter for a couple of reasons. First of all carriers are using up excess inventory of PAIR's higher priced HDSL product while they wait for the lower priced product to be released. Secondly, there has been a temporary slowdown in the networking sector as companies pause to see if ATM of Gigabit ethernet will become the standard. If companies are not building networks than they do not need T1 lines to connect them.

We expect these issues to work themselves out over the next quarter or so. Earnings for PAIR will be a bit weak this quarter, probably closer to $0.18 rather than our estimate of $0.20. However, after the quarter is released will be a great opportunity to get back in or increase your position. This stock is extremely cheap on a valuation basis trading at a significant discount to 1997 and 1998 PE/Growth estimates. With all of the bad news out of the way and new ADSL and HDSL products expected to contribute to top line growth, I believe that there is significant upside to PAIR.

Erik

Thought this might be of some use here.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News