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Technology Stocks : Juniper Networks - JNPR -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (663)	8/12/1999 1:56:00 PM
From: The Phoenix	Read Replies (2) \| Respond to of 3350

I think JNPR is for real, however I'm not sure a $10B cap makes sense. The cap. is an assumption that JNPR has a huge lead in core routing, that no competitor can knock them off and that JNPR will leverage this success into lower end edge products thus taking a bite out of CSCO. I do think this is all possible if CSCO doesn't react, but well... CSCO always seems to pull a rabbit out of their hat. Now, the next question is will JNPR get bought... well.. there are two ways to look at that. 1 - buseinss... does JNPR's business justify $10B. The answer is a flat out NO. Any company needing JNPR type products already has superior relationships with the SP's. 2 - technology. JNPR does have technology but the question is (at a $10B) would it cost a CSCO less money to develop their own and would the loss of time be too costly (time to market). The answer is surely CSCO could develop such a product for less, BUT if they are a year away from completion well.... CSCO can not affort to let this market get away from them. So, if CSCO doesn't pull the trigger soon then I would surmise that they'll have their own announcement soon. CSCO simply will not let JNPR get a strong foothold IMO. So, going back to your original question.... JNPR can hold this capitalization for another couple of quarters and may split...then they'll either get bought or get smooshed. Again, JMO. OG