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Technology Stocks : Harmonic Lightwaves (HLIT) -- Ignore unavailable to you. Want to Upgrade?

To: Steve Hufnagle who wrote (2983)	10/27/1999 1:28:00 PM
From: OpusX	Respond to of 4134

Steve, As a new investor in HLIT I'm not familiar with the Salt Lake City trials with T that you refer to. Would you mind posting a link or more info on this trial. Thanks, Robert

To: Steve Hufnagle who wrote (2983)	10/27/1999 3:54:00 PM
From: Eric Jacobson	Respond to of 4134

Hi Steve, I think there may be four sources of good news waiting for HLIT: 1. Adoption of Lightwire architecture by T with widespread implementation in other upgrades. 2. They are selling MetroLink to 12 cable companies. Clearly, adoption of this platform by this many companies has the potential for significant revenue growth, especially if there is speculation these other companies may migrate to Lightwire. 3. Widespread installation of PWRBlazer I and II as cable companies upgrade to digital/VOD format. 4. More widespread installation of Cyberstream digital products. I just don't see any of these happening any time soon. At best, T may make a decision on Lightwire in Q1. This could be January, or it could be March, which is five months away. Implemenation of MetroLink could take off sooner, but I don't think it will ramp in the same way it did with T. PWRBlazer hasn't exactly taken off like hotcakes. Maybe the new PWRBlazer II will make a difference, but MSOs don't seem to be in a hurry to upgrade to digital. And the company said they expect sales of digital products to increase next FY, but this is from a relatively small base, so I don't see a significant impact on overall revenues any time soon. So, I think we could be in for a 4-6 month period with little or no major news to significantly propel the stock higher. This is why I sold part of my holdings. I've said all along that HLIT became somewhat of a mo-mo stock. This is good on the upside, but can be painful when the mo-mo types jump ship once they perceive the rate of growth has peaked. I just took some of my profits at a time when I thought this was likely to occur. I don't necessarily think all of the good news if priced into QCOM. I think QCOM is kind of like a snowball that is still gathering a lot of mass. I think the market has finally understood their lock on CDMA telephony, but not necessarily the implications for 3G or wireless data transmission.