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To: westpacific who wrote (73134)	11/23/1999 11:52:00 PM
From: kendall harmon	Respond to of 120523

EXTR--one more post <<By Cecily Fraser, CBS MarketWatch Last Update: 5:33 PM ET Nov 23, 1999 Personal Finance News Join the discussion SAN FRANCISCO (CBS.MW) -- Shares of Extreme Networks took a beating Tuesday after a leading brokerage said the networking equipment maker is unlikely to continue its trend of posting better-than-expected earnings. In a research note, Morgan Stanley analyst Chris DuPuy reiterated an "outperform" rating, but said fourth-quarter numbers (for the calendar year) will have less upside potential than in prior quarters. The analyst sees fourth-quarter revenue totaling $52.6 million on earnings per share of 9 cents. That's in line with estimates of analysts surveyed by First Call. DuPuy kept his target price of $105, and said sequential trends could improve in the first half of 2000. In the company's most recent first fiscal quarter (the third calendar quarter), revenue hit $47.2 million, with net income totaling $4 million, or 8 cents a share. That was two cents ahead of expectations and exceeded year-ago totals of $12.9 million in sales, with a net loss of $3 million, or 8 cents a share. The high-flying stock, which hit a 52-week high of 104 1/4 just last week, fell 24 percent to 70 1/4. Too much too soon? Yet, the move may have been a bit extreme considering that Extreme Networks' high-speed switching products are in great demand. "It's too early to make a call on the quarter," said Robertson Stephens analyst Paul Johnson. Johnson said its not clear the December quarter is all that relevant to the investment theses, considering that the company has just introduced two new products and is readying two more for introduction in the March quarter, all aimed at the carrier market. "The growth potential for those four products is spectacular," he said. "They won't ship in volume until the first half of next year. So, none of them affect the December quarter, so if I don't get an upside surprise, I don't care because I have a very specific event happening in the March and June quarters." Johnson said he reiterated a "buy" rating on the shares, and expects fourth quarter sales of $52.5 million and earnings per share of 9 cents. "The stock is now on sale, and we've used the opportunity to make a call," Johnson added. Not only that, but Extreme Networks has a "spectacular" balance sheet, according to Johnson. At the end of the September quarter, the company had a total cash position of $116 million, with no long-term debt. In October, Extreme priced an additional 6.5 million common shares at 77 apiece. Of these shares, 1,307,708 were sold by the company, amassing another $107 million. Extreme Networks' business also taps into Wall Street's fondness for equipment and technology companies geared toward Internet infrastructure. "This may be the best value in the group as of today's action," said Johnson. "It's hotter than white lightning." >>

To: westpacific who wrote (73134)	11/24/1999 6:34:00 AM
From: Jenna	Read Replies (1) \| Respond to of 120523

Welcome to our group... Kim's group is excellent and is a great example of a veritable newcomer who has through sheer excellence, professionalism, and interest catapulted to a permanent resident of the 'hot' list. I have little doubt she will be the #1 thread on SI and deservedly so. It's also a refreshing change that we are friendly, hold a mutual respect for each others skills and knowledge, and no one begrudges the success of the other. Quite the contrary actually. Our book is coming to completion as all I have left is a sub-chapter on Options and general information on how general market indicators like advance/decline line, TRIN, etc. will help in your earnings plays and momentum plays. We will be announcing an important merger soon which will clear up some of the new features I've been hinting at. Our subscribers will be getting a two-for-one deal which they will see soon enough and our 'service' will improve because of our merger and access to the best of everything in trading.