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Technology Stocks : Emulex, What Prospects? -- Ignore unavailable to you. Want to Upgrade?

To: Patrick J. Saunders who wrote (375)	5/26/2000 10:35:00 PM
From: Jack Hartmann	Respond to of 788

Patrick, EMLX reflects the market sell off in techs. The 13% sequential growth in revenues from the March quarter seems to be the culprit. Market oversold it then, but EMLX has the show 100% y2y growth and meet the EPS estimate of 0.20. If not this will go down lower. Maybe $35 downside before earnings if the Nasdaq holds 2900 for June. EMLX reported that its order backlog in Q3 came in around $27 mln, about 22% higher than last quarter in the March quarterly report. Jack

To: Patrick J. Saunders who wrote (375)	5/26/2000 10:45:00 PM
From: Fred Gohlke	Read Replies (1) \| Respond to of 788

Patrick, Here are two things I think you ought to consider. 1) What multiple will the market assign to EMLX when the current violence has run its course? 2) Is optimism for the sector indicated while the market is punishing QLGC (an EMLX spin-off)? We are in the throes of a bear rampage. Someone much smarter than I once said, "Don't fight the tape." I am a long-time EMLX/QLGC investor (since before the QLGC spin-off), and am currently out of both, waiting for what seems like a good time to commit again. It is an extremely hard call. When they light the fire under EMLX, it will be off like a rocket. It will be hard to get a seat, but I'd rather look for another winner than get caught on the short end, if "the market" decides EMLX should be assigned a much lower multiple. How will I know? I won't, I'll have to read all the tea leaves and chicken entrails I can find when the market seems more hospitable than it does right now. I trust you realize that this is an opinion, not a recommendation. Freddy