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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (71187)	12/1/1999 9:17:00 AM
From: Les H	Read Replies (2) \| Respond to of 132070

Cerant Part II...You may remember a while back when Cisco laid out $7 billion for fiber player Cerant Tech. (a company with six month revenues of $10 million and losses close to $30 million). Well, in a case of "new era" deja vu, Redback Networks shelled out $4.7 billion in Redback monopoly money yesterday to purchase Siara Systems. In a true case of long term investing, Siara actually has no revenues or currently marketable products at all. Of course Siara is developing a system using fiber to manage and speed up Internet traffic. For it's M&A prowess, Redback was rewarded with an immediate $588 million one day increase in its own market cap. Redback now sports a total market cap of $6.5 billion. Revenues? $20 mill in the 3Q. Earnings? Lost $1.6 million in 3Q. We just have one question. Since Siara currently has no marketable products, can Redback write-off the entire $4.7 billion acquisition price as in-process R&D? Since the Street is willing to grant "companies of the 'Net" essentially free capital, anything goes. We guess we just can't fault Redback for accepting manna from heaven. contraryinvestor.com

To: Knighty Tin who wrote (71187)	12/1/1999 11:32:00 AM
From: Knighty Tin	Read Replies (5) \| Respond to of 132070

To All, PC DATA came out with their estimate of year over year retail pc sales. DOWN 9.7%! Wait a second! CNBS and Dataquest and IDC tell us pc sales are going gangbusters, especially at the retail level. And they've been lying about it all year as sales have fallen off a cliff. Is this the first dent in the 12 month long Xmas lie of PC sales? Looks like it. Some will say that as long as unit sales are up, negative sales don't matter to component and software geeks. I disagree. The OEMs are not going to continue to pay out big bucks for junk that goes in the boxes they assemble when they are not getting paid for them. Now we need a clearer look at business pc sales. My guess is that they are in worse shape than retail, but I don't yet have proof. This could be the mother of all Xmas lie regurgitations. <g>