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Technology Stocks : PairGain Technologies

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To: Henk Kruisbrink who wrote (19748)1/30/1998 11:42:00 AM
From: Purebull  Read Replies (3) of 36349
 
Adding a little to your post on the Netspeed / U S West deal.
When I talked with Jeremy Story from U S West I said Netspeed seems like a new company. His reply was yes, the company is new but they have a lot of good people who have been in this business for a long time. He said Grant Dove is well respected in this area.

I asked if U S West is confident that Netspeed can deliver on time and the volumn of product that would be required for this large of a project. He said they felt there would be no problem with delivery.

A couple points that made me wonder about this deal are:

1. This is a privately held company. Are they going public or where will all the money come from for this large a venture? Charlie said, PAIR's revenues should pick up as they don't get paid till the customers are collecting from their customers. They front the set up and equipment and then the money starts rolling in. They have several that are ready to start producing.

2. Did they get a sweetheart deal from U S West? U S West may be thinking after Netspeed gets started they won't be able to complete and U S West steps in and buys them, cheap and everybody (in the company) makes money.

Purebull
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