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Phil. You asked for information regarding PAIR. Specifically, should you invest in this company. I've included several items below that you should consider in your decision-making process. This is a very broad overview. Target questions for each (or others) can be expanded upon as needed.
The Good
1) over 1,000,000 HDSL units deployed (over 60% marketshare)
2) international market growing at 40% per year (The Competition doesn't even have oversees exposure)
3) STRONG RBOC relationships (also with ILECs, CLECs, PXNs, and ISPs)
4) $250M in the bank (around $3 - $4/share inherent value)
5) extremely low P/E compared to 26 yardstick used for SP500 stocks
6) superior engineering (products are far the best in the market)
7) new CEO - Pascoe formerly of Newbridge Networks
8) Falcon chip and Avidia
9) perennial takeover candidate (take your pick - LU, TLAB, INTC....)
10) undergoing internal repositioning, transforming itself into a total solutions company
The Bad
1) heavy reliance on now commodity item (although they are making a concerted effort to shift dramatically)
2) limited international presence (need to take shotgun approach to saturate foreign market while in it's infancy)
3) recent loss of primary supplier status at Bell Atlantic (translates to roughly $0.05 decrease in earnings revenue per quarter).
4) cash rich (better use for all that money?)
5) share price (and P/E) drop due to flat earnings in 1998
6) some customers don't care about superior performance - price is the driving force
7) poor PR (fails to champion the many PAIR success; can't seem to leverage this to it's advantage)
8) counting on Avidia (and Falcon) to revive earnings, margins, and topline growth
9) company wants lots of money for a sale (around $30/share)
10) internal transformation will take a bit of time
Hope this helps. Good luck.
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