I think you are righ. The problems experiensed by on-like brokerages
should not increase demand for Shiva products. Shiva's main customers
are ISPs and customers interested in remote connections to networks.
Also, from what I read in the article that appeared in last weeks
Boston Globe, Shiva can not compete with Nortel in North America.
What's not clear is whether they can not compete on all products, or
the products that are resold by Nortel. Shiva is in the process of
renegotiating their agreement with Nortel. The new agreement should
give Shiva more flexibility or increase payments from Nortel. Either
one should increase Shiva's revenues in 98.
Regarding Shiva's stock price, when the market drops, Shiva drops. When the market goes up, like on Friday, Shiva also drops.
The last 2 trading days, Shiva opened up and was in positive territory for the first hour or so. Then, it's downhill. Friday was very disturbing because the stock started dropping on increasing volume.
It looks like we are headed into single digits again.
Ed.
P.S. For those who did not read last week's article, here is the link.
boston.com
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