Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Jenna who wrote (73030)	11/23/1999 1:50:00 PM
From: Jenna	Read Replies (1) \| Respond to of 120523

<<stock #9 WL 11/23 day high doing very well>> PPRO..holding also for potential rally.. dropped a few hundred for profit taking.

To: Jenna who wrote (73030)	11/23/1999 7:31:00 PM
From: kendall harmon	Read Replies (1) \| Respond to of 120523

EXTR--H and Q comments today <<from H&Q: Weakness in EXTR Stock Creates Buying Opportunity · We believe that EXTR will be challenged to report the level of upside this quarter that it has achieved in recent quarters; · Mgmt indicated that demand remains robust, however some customers are deferring shipments until new products are available next quarter; · While Dec. qtr upside appears limited, we believe that deferred orders provide an opportunity for strength next quarter; · We reiterate our BUY and view pressure in the stock as a buying opportunity, noting company's attractive valuation relative to peers. Extreme Networks is the leading provider of next generation switching solutions. The company manufactures and sells Gigabit Ethernet Layer 3 stackable and chassis based switches. Recent discussions with management suggest that shipments this quarter are being impacted by customers deferring orders until new products are available next quarter. As a result, it will be difficult for the company to achieve the same earnings upside that it has achieved in recent quarters. In addition, the quarter will be more back-end loaded and DSO's will edge up to the high-end of the company's target range of 45-49 days. However, management is already building backlog for new products in the March quarter, where as the company does not typically build backlog this early in the quarter. Therefore, we feel that demand remains robust and that sales are being impacted by timing issues. We do not feel that there are any changes in market demand, nor have we seen any changes in the competitive landscape. Notably, Extreme was ranked as the market leader in Layer 3 ports shipped in the September quarter. We feel that the recent pressure on the stock presents a buying opportunity. While the new product transition appears to be more pronounced than we anticipated, we do not believe that it changes the company's long-term fundamental outlook. We continue to believe that the company has a highly competitive solution and that market demand remains robust. In addition, with EXTR trading at approximately 15x 00 revs, the stock trades at half the average for its group of peers. Therefore we believe that EXTR will outperform the market and we reiterate our BUY rating.>>