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Technology Stocks : Foundry Networks, Inc. FDRY -- Ignore unavailable to you. Want to Upgrade?

To: $Mogul who wrote (330)	9/30/1999 1:59:00 AM
From: puborectalis	Respond to of 1225

Extreme Networks files to sell 6.5 mln shares WEDNESDAY, SEPTEMBER 29, 1999 7:11 PM - Reuters WASHINGTON, Sept 29 (Reuters) - Extreme Networks Inc. (NASDAQ:EXTR), provider of switching for local area networks, filed Wednesday to sell 6.5 million shares, a Securities and Exchange Commission filing showed. The company plans to sell 1.275 million shares while stockholders including Gordon Stitt, the company's president, chief executive officer, and chairman as well as others, will sell the remaining 5.225 million shares, the filing said. Extreme Networks, based in Santa Clara, Calif., will receive about $80.5 million from the sale of its shares and said it plans to use the funds for general corporate purposes, including capital expenditures and working capital. The company won't receive any of the money from the sale of stockholders' shares. The underwriters, Morgan Stanley Dean Witter, BancBoston Robertson Stephens, Dain Rauscher Wessels, Hambrecht & Quist and SG Cowen, have been allotted 975,000 extra shares in the event of heavy demand. Extreme Networks' shares closed up 5/16 to 66-15/16 on Nasdaq. ((Jeremy Pelofsky, 202-898-8399))

To: $Mogul who wrote (330)	9/30/1999 7:55:00 AM
From: Techplayer	Read Replies (1) \| Respond to of 1225

$Mogul, Thanks for posting your thoughts in depth. It is difficult to fathom. T o randomly throw out ridiculous valuations can suck some people into devastating short term losses. Like you said, look at ATON. (They also gave back all of Monday's gains yesterday.) The difference is that ATON opened in the 40's, not 109. FDRY and Cerent are not competitors. Cerent was worth what it went for for CSCO because CSCO desperately needs to penetrate the optical market to keep growth and margins at present levels. The acquisition of Cerent was incredibly expensive but allows CSCO to better penetrate a market that is worth billions starting next year. Congratulations on your profits. Watch for Sycamore next month. Brian

To: $Mogul who wrote (330)	9/30/1999 8:26:00 AM
From: Techplayer	Respond to of 1225

$Mogul, looks like there will be a nice positive open today. this is an excerpt from an article on the CSCO board that concerns me over the future growth and success of FDRY. "Finally, Cisco, the industry colossus, took longer to produce gigabit Ethernet switches than most analysts predicted, breaking into the market late last year. That gave Extreme and Foundry an opening to sell to companies that wanted to upgrade their networks. Still, many analysts think Foundry, Extreme and Alteon are merely the latest beneficiaries -- and likely future victims -- of a mania for Internet-related stocks. The bottom line, these analysts say, is that both pillars of the old conventional wisdom are intact: The market for advanced Internet switches remains very competitive, and Cisco is still a formidable rival. Nine switch-makers recorded sales of at least $10 million in the second quarter, according to the Dell'Oro Group. Cisco, despite its late entry, has leaped to the head of the pack with roughly a 30% market share. Nortel Networks Inc., another big player, is second, with roughly a 20% share, the Dell'Oro Group says. And chipmaker Intel Corp. recently said it, too, would begin making gigabit Ethernet switches as part of a broad push into networking." NT and CSCO have product and customers. They also have clout and the ability to slash prices to squeeze out the little guys. FDRY seems like a great company, but not a great long term investment at present levels. Good luck, Brian