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<..Given a 3-2, there is much more probability for an upgrade....>
I agree and am glad ML picked up coverage. Thanks for the heads up - I'll get the report tomorrow.
In the meantime, Cowen and BTAB will keep us informed (anyone do business with Wessells? I may have to give them some trades to get a link there. I get the feeling that Goldman may pick up coverage soon as well.
And as Chris Stix has said, YURI likely beats Q1. This should give ML reason to upgrade, and the stock will REALLY squeeze up. I could certainly see this stock above 30 as a result, inside 3 months. This could be a fun ride.. 22 on margin could show a double.
I have time for a few more details from Stix's report today:
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Moving to the next carrier trials level, both Sprint and MCI have network certified YURI's products. Near term orders from IXCs and CLECs are expected for live traffic trials. These customers will likely order 10+ units each for these live trials, with a chance that Q1 carrier sales will be stronger than expected.
FORE's competitive product - Cadia - has been delayed until 99 with a redployment of the engineering team (see Gary, it's NOT that easy to get carrier class quality).
On track enhancements: YURI's frame relay capabilities, with an enhanced DS1 card and DS3 capabilities; inverse multiplexing over ATM (IMA) whic enables an enterprise to use up to 10 1.5 Mbps ATM channels as a single channle; and DSP2, which offers ehanced VBR voice features.
And Split Rock should be less than 10% of sales in Q1 (vs 50% in Q#:C97 and 35% in Q4:C97) Q1 could be well above the estimated revenues of $17.6MM. Sales through Bay is expected to be particularly robust - especially to a more diverse group of government and enterprise customers - such as the Navy ship communiactions deployment. Significant orders from LU and ERICY are expected to ramp in Q2 (which will make for a strong Q1 conference call).
"Once a carrier win is announced we believe the stock will take off"
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This could be a VERY nice, spring-loaded ride. Enjoy all.
Steve |
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