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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: $Mogul who wrote (107771)	6/6/2000 5:53:00 PM
From: Bouf	Respond to of 108040

Weird day...actually made some money!!! :) CAWC...looking to take off..nice...can't wait Even my penny EXPLODED..PLRP...going to big BIG someday...up 24% today...and Friday is not even here yet... COOL and PSI..the game begins....getting noticed...especially PSI...( a REAL STEAL IMO)

To: $Mogul who wrote (107771)	6/6/2000 8:36:00 PM
From: puborectalis	Respond to of 108040

How Sycamore Aims to Stay Hot By Alec Appelbaum LOOKS LIKE Sycamore Networks (SCMR) intends to remain a hot stock for some time. Less than eight months after it went public, the maker of software and hardware for light-speed ("optical" in techno-speak) telecom networks Tuesday announced the acquisition of privately held Sirocco Systems, which makes software for optical connections within metropolitan areas. By purchasing Sirocco for $2.9 billion in stock, Sycamore makes its biggest deal to date and obtains a company that will help it compete against Cisco's (CSCO) optical division and Lucent's (LU) future optical offerings. At the same time, the purchase makes Sycamore a much more expensive potential acquisition for anybody else. The optical-networking equipment sector enthralls investors these days because it is an area characterized by intense demand and low supply. Every phone company ? from Deutsche Telekom (DT) to your neighborhood cut-price competitor (think Electric Lightwave (ELIX)) ? wants to make its lines carry more information smoother and faster. Optical networking helps them do that by carrying information in the form of lightwaves instead of electronic signals. But because optical-networking equipment is complex to manufacture, only a few companies make it. That explains why the stocks of the few companies making the products have performed so well. Sirocco, of suburban New Haven, Conn., makes hardware for connecting offices to high-speed gear like Sycamore's, which helps route data in the middle of the network. Its top engineers know Sycamore's chiefs from stints at now-bygone companies, according to Brean Murray analyst Gina Socklow. Sycamore CEO Dan Smith, talking to reporters Tuesday morning, said his team had been eyeing Sirocco for months. "It's a very large market opportunity, and we felt we could maybe be one of the leaders," he said. With joint Sirocco-Sycamore products due for testing this summer and release this year, Sycamore could sell gear for use throughout a metropolitan area's local network. That breadth could make it a more attractive supplier to phone companies, which are generally in a hurry to update their networks. On that logic, Sycamore is on the prowl for more acquisitions. Smith said Tuesday he was looking at outfits that make complementary products, as Sirocco does, or ones that tailor their offerings to cable and wireless networks rather than long-distance fiber ones. Like Redback Networks (RBAK), another networking-equipment phenom that audaciously bought a private company for billions last November, Sycamore is trying to accelerate its revenue growth by dealing more goods to its hungry customers. Like other optical-equipment makers, Sycamore has an acquisition currency in its relatively undamaged stock. In the throes of April's Nasdaq decline, it sank 50% for the year. But in late May, it announced a profitable first quarter, and it made up the year's entire loss last week. The company's better-than-expected financial performance helped the stock, but it doesn't hurt that investors remain interested in optical plays in general. Juniper Networks (JNPR), which makes big pieces of equipment for Internet traffic, has never seen its stock fall into negative territory for the year. ONI Systems (ONIS), which makes software for local optical networking, gained 185% on its first trading day last week. When Sycamore first went public, some analysts mused that it could become takeover fodder for Lucent or Cisco or Nortel Networks (NT), the three biggest equipment players. That scenario now looks unlikely ? or at least expensive. "We have the financial resources of Lucent and Nortel, and stronger balance sheets in some respects than either, and now we're adding intellectual horsepower," Smith said Tuesday. There's more than a little bluster in that statement ? Sycamore's outstanding market value is barely a tenth the size of Lucent's. But the company could make a more convincing long-term competitor with Sirocco nailed down. Brean Murray's Socklow points out that much depends on how Sirocco and Sycamore products fuse. "Until these products can be evaluated against the expected onslaught of new competitors' optical switches," Socklow wrote to clients Tuesday morning, she rates Sycamore a Hold. Every other analyst on the Street (most of whose employers helped underwrite Sycamore's IPO) rates the stock at least a Buy. Credit Suisse First Boston reiterated that rating Tuesday. But Socklow says it's trading at too high a premium to be a wise investment. If Sycamore keeps its buying up, bigger networking companies will probably think the same thing.

To: $Mogul who wrote (107771)	6/6/2000 9:06:00 PM
From: Frederick Langford	Read Replies (1) \| Respond to of 108040

Mogul, C,mon, the funds just began to nibble last Friday. Are you saying they already sold and went short??? Don't you wonder what your fees would be if the Funds acted like daytraders? A hell of a lot higher than they are. That's for sure. I'm sure a few hedge funds and some contrarian funds, or perhaps the rare over aggressive fund manager, but hardly, The funds. Short term we are over bought in some volatile areas. Others look OK. I think ENE looks good. Lot's look good in the energy sector Semi's could present a welcome buying opp. Numbers Friday might be just fine, we might even rally before the numbers. No one really knows. Fred