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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Connor26 who wrote (63390)	9/27/1999 2:51:00 PM
From: ynot	Respond to of 120523

not sure, but excellent risk/reward :) ynot ;)

To: Connor26 who wrote (63390)	9/27/1999 3:44:00 PM
From: Connor26	Read Replies (2) \| Respond to of 120523

Monday September 27, 3:24 pm Eastern Time Foundry Networks IPO generates market buzz NEW YORK, Sept 26 (Reuters) - Networking firm Foundry Networks Inc., set to debut this week, is generating a buzz in the initial public offering market because it not only has a foothold in the high-growth networking sector but also has a profit--a rarity for a new issue. The Sunnyvale, Calif.-based maker of networking products posted a profit for the six months ended June 30 of $3.3 million on revenue of $39.5 million. ``This deal has all the characteristics of a moonshot. If an investor, had only one shot at an IPO , this would be our choice,' said Irv DeGraw, research director at WorldFinaceNet.com. ``This is a high profile firm with exceptional fundamentals and a strong product position in a high valuation sector.' Foundry uses customized semiconductors to provide switching products that offer better performance at a lower cost than traditional routers that rely on software to provide comparable functionality. It plans to offer 5 million shares, representing a 9 percent stake in the firm. It nearly doubled the expected price range to $22-24 versus $14-$16, reflecting the strong demand for the deal. Deutsche Banc Alex. Brown is the lead underwriter on the deal. ``I think it's probably the best of this week's deals, primarily because of where it is in the networking space,' said Mark Basham, an analyst at Standard & Poor's. ``They are really poised to gain market shares in that area. Traditionally, Cisco Systems Inc. (NasdaqNM:CSCO - news) has been the dominant company but it is focusing on bigger fish. It's still in the marketplace, but there are a number of companies like Foundry that are starting to chip away at this part of the networking sector.' Hewlett-Packard is a major Foundry customer and its sole OEM. It accounted for 15 percent of Foundry's revenue, according to the company's prospectus. Alteon WebSystems Inc.(NasdaqNM:ATON - news), another networking firm, debuted last week quadrupled after its IPO and it extended gains further Monday. It was last up 31-5/16 at 106-1/4 after its $19 a share IPO last week. ``I think Alteon's performance will just add to (Foundry's) performance. It's validating the Web switching sector, which is new and Alteon doesn't even have the same quarter to quarter performance as Foundry,' said Francis Gaskins of Gaskins IPO Desktop.