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Technology Stocks : Advanced Fibre (AFCI) ** IPO -- Ignore unavailable to you. Want to Upgrade?

To: Jeff Sutton who wrote (2777)	10/26/1999 12:00:00 PM
From: Ram Seetharaman	Read Replies (1) \| Respond to of 3299

Stock will go to $ 30+ next year. Short term it will be volatile!

To: Jeff Sutton who wrote (2777)	10/26/1999 12:01:00 PM
From: sepku	Respond to of 3299

you might want to check this out (xtract from I.I. article, dated oct26) before you make any decisions. hope this helps. good trading. The gross margin improved to 48.5% from 45.3%, and the operating margin increased to 10.4% from 3.6%. This type of margin improvement is particularly encouraging, especially in light of improving visibility among Advanced Fibre's customers. The balance sheet and cash flows have also improved. Cash and marketable securities now stand at $166.5 million, up from $110.7 million at the beginning of the year. Keep in mind that Advanced Fibre is set to receive $274 million after taxes from its 5.5% stake in Cerent, which was recently acquired by Cisco Systems (NASDAQ: CSCO - Quotes, News, Boards) for $6.9 billion. Although, the company can't sell the stake until February, its financial flexibility will continue to improve. Overall, the company's outlook has shown marked improvement. Although international sales remain somewhat sluggish, management stated in a recent interview with Bloomberg News that China and South Africa should pick up. Also on the international front management has confirmed that it is seeking to partner with a telecom equipment maker to develop a worldwide distribution network. In addition, Advanced Fibre has been rumored as a takeover candidate for some time. With managerial changes in place, profitability improving and a strong balance sheet, the possibility looks better than ever. The good news flow from the RBOCs' capital spending plans and the acquisition rumors should expand the multiple as well. US Bancorp Piper Jaffrey analyst Conrad Leifur raised his 1999 earnings estimate by $0.04 per share to $0.27 per share and his 2000 forecast by a dime, or 33% to $0.40 per share. If the multiple remains at current levels, that equates to 81 times the 2000 forecast, or $32. What's more, we believe that earnings estimates will continue to trend upward over the next few-quarters. Bottom Line: The "easy money" may be gone, but we see nothing but upside ahead. Tell us what you think in AFCI's Board