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To: GST who wrote (106712)	7/29/2000 3:38:02 AM
From: H James Morris	Respond to of 164684

>What we had in June-July was a bear market rally I call it a dead cat bounce because of Yhoo.

To: GST who wrote (106712)	7/29/2000 3:51:55 AM
From: H James Morris	Respond to of 164684

> Fibre-optic IPOs shine in tepid market By John Labate and Andrew Hill in New York Published: July 28 2000 18:39GMT \| Last Updated: July 28 2000 22:43GMT Companies in the red-hot fibre-optic communications sector bucked weakness in US technology stocks on Friday, successfully launching initial public offerings into a choppy market. By the close of Friday's trading day in New York, shares in Corvis, which designs and builds optical equipment for long-distance communications networks, had risen $48-23/32, or 135 per cent, to $84-23/32. Corvis sold 31.6m shares at $36 per share, well above the estimated range of $28 to $30 per share. Based on Corvis's total number of outstanding shares, the company's market capitalisation reached $23bn. Corvis networks allow for the transmission, switching and management of internet traffic entirely as optical signals. Though the company has no revenues, investors have high hopes that three large contracts Corvis recently won will generate strong sales in the coming quarters. The largest of the three contracts, with Williams Communications, is valued at $200m over a two-year period. In a separate deal, Qwest Communications also has agreed to purchase $150m in products that Corvis has yet to develop. "Fibre optics are probably one of the last areas that are unambiguously hot [with investors]," said Randall Roth, analyst at Renaissance Capital's IPO fund. "I'm curious to see how it will hold up. A lot of these things look like one-day wonders." Altogether, 10 companies launched initial public offerings on Friday, making it one of the busiest days for IPOs since the internet stock bubble began to deflate in March. Corvis, whose lead underwriter was Credit Suisse First Boston, wasn't the most spectacular performer in early trading Friday. Avici Systems, which makes high-speed routers for fibre optic networks, had recorded a rise of more than 200 per cent by lunchtime in New York, trading at $93, compared with a higher-than-expected offer price of $31. Morgan Stanley Dean Witter was the underwriter for that offering. Illumina, a drug research company, also saw its shares more than double to $34, up from its offer price of $16. This week's volatility in the Nasdaq Composite Index - it had fallen 7.5 per cent between Tuesday's close and midday Friday - has created an uncertain market for companies seeking to go public. Several companies in areas including business-to-business electronic marketplaces, e-business consultancy and wireless data software withdrew their IPOs this week, citing adverse market conditions.