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Technology Stocks : Exodus Communications, Inc. (EXDS) -- Ignore unavailable to you. Want to Upgrade?

To: Spreck who wrote (1180)	9/3/1999 7:17:00 AM
From: TheOX	Respond to of 3664

Spreck, Like you I am very concerned about the volatility of EXDS. I recently liquidated all 2,200 shares of EXDS in my port. Rising interest rates are of a major concern to a company like Exodus. Two separate acquaintances in their Seattle office near me have mentioned their concern over the direct impact of interest rates on the company's bottom line. For the 6 months ended 6/30/99, revenues rose from $17.2M to $72.6M. Net loss applicable to Common increased 46% to $43.1M. Results reflect an increase in the number of new customers from the Internet Data Centers, offset by higher interest expense on large corporate debt. The company has fluctuated between 72 and 81 percent institutional ownership, yet has seen extreme downward volatility pressure from short-term traders. It is very difficult to pinpoint the true valuation. In addition, my research prior to yesterday's sell order showed that ALL insider trades are sells, and are of relatively large percentage positions. All this aside, my largest concern which ultimately led me to liquidate Exodus was the 82 million shares and a float of 70 million! Given FMR(FIDELITY MANAGEMENT & RESEARCH CORP)Corporation's historical tendency to leap from smoldering buildings without warning (and since they are the largest shareholder at nearly 10.3 million post-split), I just saw the risk/reward scale way too pivotal. If they jump ship, or even hint at getting off the bandwagon, this sucker could easily see a 30 to 40 percent correction. I exited with a decent profit and have no intentions of shorting, but hardly see any reason for re-entry or hold at this point. Good luck in your endeavors. -The OX