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Technology Stocks : Oclaro, Inc. (Avanex-Bookham) -- Ignore unavailable to you. Want to Upgrade?

To: Techplayer who wrote (325)	3/17/2000 12:54:00 PM
From: Andy Yamaguchi	Read Replies (1) \| Respond to of 2293

The optical processor and Interleaver DWDM were the main buy points for AVNX. NOw with optical processor's future became uncertain and low yield for DWDM, where are the reasons to buy this stock at this price? Good underwriter? Give me a break. In addition to the above reason, at least 5 companies announced INTERLEAVER DWDM including fiberoptics king GLW. AVNX's Optical processor has not passed Bellcore test yet. You may not know that Bellcore test is an industry standard test which takes at least 6 month to pass. Pipeline? These just are hope or hype?The fact is that they have not announced anything yet expect optical processor and DWDM. Even they have announced the new products, as long as they are not passing Bellcore yet, it is meaning less. Telecommunication is not consumer product, it requires tough reliability standard. No big OEM would buy any thing unless the product passes the BellCore. Just keep in mind that any new product needs at least 6 months to pass the test even every thing is smooth. Someone from fiberoptic industry posted on Yahoo that the maximum price for AVNX's stock is worth $20. I do not completely agree with him on the $20 price, but the best shot would be 1/5 of ETEK's value. That is why I recommended to short AVNX and buy ETEK as a hedge. This combination would have almost no risk but has huge upside potential. Good luck for all your longs.