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Technology Stocks : Son of SAN - Storage Networking Technologies

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To: George Dawson who wrote (1205)	5/2/1999 3:04:00 AM
From: Kerry Lee	Read Replies (1) of 4808

Go to: ipodata.com This is a better website than IPO.com. You will find a quick, up-to-date summary of each recently filed IPO's as well as new IPO's. Look at the summary of both Brocade ( BRCD ) and Marimba ( MRBA ). - BRCD uses Morgan Stanley and Alex Brown..so does MRBA - BRCD has trailing 12 months revenues of $24 million, MRBA trailing 12 months revenues are $17 million. -BRCD has 25 million shares, MRBA has 22 million shares - BRCD is offering 3.25 million shares in the IPO, MRBA offered 4 million shares - BRCD preliminary pricing range is $8 - 10..In comparison, MRBA originally priced at $13-15 range but jacked UP to $16-18 range on 4/28/99, then finally priced at $20 on 4/20/99. - MRBA closed its first day as a public company at $60 3/4...a market capitalization of $1.36 Billion. That translates to a Price-to-Sales ( PSR ) ratio of 80. PE is irrelevent since MRBA lost $6 million in 1998. You can bet that these savvy Wall St sharks will SPIN a great story on the BRCD roadshow, EG: the hype/buzz surrounding Fibre Channel, SANs , how SANS are an integral part of Internet growth ( eg MTIC and DoubleClick deal )and how one of THE 3 co-founders of SUNW, Andreas Bechtolscheim took Cisco to the cleaners with Granite and and invested a chunk of his Cisco profits into BRCD. - I would not be surprised to see BRCD IPO VERY successful and trade into the $30-40 range in its first week.This would translate into BRCD market cap at $750 million - $1 billion. If BRCD does not perform hot out of the gates, then it would signal that something is amiss at BRCD from a fundamentals perspective that the fund managers have picked up something negative about BRCD during due diligence.The month of May should be interesting..I would not be surprised to see BRCD announce another OEM soon to boost the interest in the IPO roadshow...on the other hand, I'm not sure if an OEM announcement prior to the IPO would violate the SEC quiet period. Any lawyers care to comment? PS - I would also not be surprised if BRCD foregoes the IPO and becomes CSCO-captive..perhaps their strategy is to use the IPO as a bargaining chip to squeeze a better price out of CSCO??

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