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Technology Stocks : Advanced Fibre (AFCI) ** IPO -- Ignore unavailable to you. Want to Upgrade?

To: lml who wrote (3051)	7/14/2000 6:05:40 PM
From: E_K_S	Read Replies (2) \| Respond to of 3299

It's still a very expensive stock. I visited the AFC booth at the Broadband Year 2000 show held here in Silicon Valley (June 28-29). They do have a pretty good local loop carrier product and a flexible methodology to integrate their ISD devises and their module cards which is all controlled with a dynamic network management software system using SUN Microsystem servers. However, there are better straight DSL local loop carriers available and AFC's technology lead is no shoe in for the future IMO. I continue to hold my position I acquired 24 month's ago and in fact have been making lots of money selling naked PUT's and writing covered calls. I covered one of my naked PUT positions today and have bought back all of my covered calls when AFC dropped in the low 40's last week. I plan to write 50% covered calls for December when they open up the strike price levels at $75-$95 range. I have also sold some naked December $65 PUTs which I will sell December $65 calls against to set up a bull spread where some of my stock can be called away at $65 with a premium of $32 for an equivalent sale price of $97/share. Summary: =============== I guess I feel AFC can continue to hold the $40-$50 price range (my estimate of fair value), has a good product mixture to achieve 30% growth or more going forward 18-24 months, BUT I am willing to take some money off the table at $97/share if offered to me in December. I do have a sizable portion of stock I will continue to hold through next year. Good luck with your investment and do not be afraid to hedge part of your holdings. EKS