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Technology Stocks : Stratex Networks, Inc. (STXN) -- Ignore unavailable to you. Want to Upgrade?

To: lazarre who wrote (1012)	8/15/2000 5:17:06 PM
From: Rob Preuss	Read Replies (1) \| Respond to of 1762

[Prudential (7/19/00): Strong Buy.] Found on Raging Bull... Investment Opinion: 07/19/00 at $34 We rate DMIC a STRONG BUY for the following reasons: We view DMIC as a solid story and an excellent way to invest in the growing demand for wireless infrastructure equipment. Furthermore, we believe DMIC has done an excellent job of pulling out of a protracted industry slump and is now in the mode of trying to effectively manage a significant rebound in customer demand. Altium is a true next-generation broadband radio that is helping DMIC to win new business and, we believe, expand its share of the worldwide market. More importantly, Altium commands a much higher margin than DMIC's core narrowband radios and so, as Altium grows as a percentage of the total mix, we expect the corporate gross margin to trend higher. We believe DMIC is working on its high capacity Velocity modem chipset, which could double the speed of its radios on the same Altium platform. We believe DMIC is in discussion with DSL (Digital Subscriber Line) providers on creating solutions for the architecture of the network. We believe that DMIC can offer solutions for backhaul from remotely sited DSLAMs with its high-bandwidth PTP (point-to- point) product solutions. We believe the tone of business and visibility at DMIC is better than it has been in years in our view. *DMIC recently announced that it will be adopting a new company name, DMC Stratex Networks. Management believes that this new name will better reflect the company's focus on the broadband access market. DMIC intends to formally adopt its new name on August 8, assuming shareholder approval.** Prudential Securities Incorporated and/or its officers or its employees may have positions in any security of this issuer. Prudential Securities Incorporated makes a market in this security. ==== I guess I must have had my head buried in the sand as I hadn't previously heard anything about the DSL stuff that's mentioned here. That could be a huge business area. Currently, DSL only works if the subscriber is sufficiently close to a switching office... to extend the reach of DSL service to the rest of the population, they'll need to install DSLAMs away from the switching office and that will create a need for more high-speed backhaul... while that backhaul might be provided by installing fiber, it will be quicker (and possibly cheaper) to install high-capacity spectrum-efficient fixed-wireless solutions such as Altium and the even more capable future generation products DMIC (oops, STXN) will soon unveil. Rob