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Technology Stocks : Aviat Networks

AVNW 23.29

-3.6%

Nov 6 3:59 PM EST

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To: Rob Preuss who wrote (133)	2/27/2008 11:56:56 PM
From: The Ox	Read Replies (1) of 312

I think management has a little credibility problem at the moment (at least with me). Dropping 08 eps estimates over 20% while keeping revs the same was a shocker. While they may have decided that under promise and over produce will be better for them in the long run, it was a severe reduction. I continue to believe in the company for the long term but this is not the best market environment to be making these types of revisions. The lower valuation appears appropriate at this time, since the company substantially raised the "uncertainty" bar. Net tangible assets are about $6/share and their current PEG is near 1, so the stock price has plenty of room to run. I doubt it will until they decide its safe to guide higher. With revenue growth slated at about 10% this year and only 7% next year, they will have to do a lot better at generating net income then they are currently predicting or it will be tough to get excited about holding the stock for the long haul. TO

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