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Strategies & Market Trends : Quarter to Quarter Aggressive Growth Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Jack Hartmann who wrote (680)	9/3/2000 11:09:37 PM
From: Jack Hartmann	Read Replies (1) \| Respond to of 6920

W) Quick and LOose on EFNT Rated a Watch Worldwide developer and supplier of high-speed digital subscriber line (DSL) customer premises equipment for the high-speed, high-volume digital communication, or broadband, access market. 09-Aug-00 13:00 -- 14:00 ET Efficient Ntwrks (EFNT) 57 5/8 -3 9/16: Jefferies & Co upgrades to ACCUMULATE from HOLD; firm believes company will be pursuing eight CPE equipment opportunities near-term and if it can win two-to-three new customers this quarter it should offset near-term channel inventory issues at SBC Communications; firm does not anticipate that troubled Verizon, which represents 5% of EFNT's revenues, will have a meaningful impact on near-term results. 27-Jul-00 14:00 -- 15:00 ET ACT Mfg (ACTM) 40 +5/16: Banc of America Sec initiates coverage with a STRONG BUY; says to own stock ahead of tonight's earnings release; firm also says they expect upside to their $225 mln top line estimate from stronger business with Efficient Networks (EFNT), however cautions that upside could be limited by component shortages. 18-Jul-00 BEFORE THE OPEN Efficient Ntwrks (EFNT) 102: Reports Q4 loss of $0.03 a share, $0.12 better than the First Call consensus of ($0.15); revenues rose 1224.7% to $101.86 mln from a year-ago of $7.69 mln; 12-Jul-00 12:00 -- 13:00 ET Efficient Ntwrks (EFNT) 83 3/8 +5 3/8: Deutsche Banc Alex Brown initiates coverage of DSL customer premisies equipment (CPE) supplier with a STRONG BUY rating and price target of $105. 06-Jun-00 BEFORE THE OPEN Efficient Ntwrks (EFNT) 65 1/4: Frost Securities downgrades to ACCUMULATE from BUY. Company's cancellation of the NetScreen acquisition may cause near-term weakness to its stock price. Although the stated reason of the dissolution was strategic, Efficient’s recent stock pullback may have prompted NetScreen to back out of the deal. 11 mln-share lockup release in July 2000 may contribute to additional selling pressure. Recommend that investors begin aggressively building back a position in Efficient when it recovers from near-term weakness. 23-May-00 11:00 -- 12:00 ET Efficient Ntwrks (EFNT) 40 15/16 -1 13/16: Kaufman Bros upgrades to STRONG BUY from BUY; lowers price target to $75 from $145. Selling pressure is overdone and the current share price offers investors a rare opportunity to participate in a leadership story at an inexpensive valuation. 18-May-00 10:00 -- 11:00 ET Efficient Ntwrks (EFNT) 54 5/8 +1 1/8: W.R. Hambrecht reiterates STRONG BUY rating and price target of $175; believes combination of accelerating growth across the global ADSL market, EFNT's status as clear DSL CPE market leader with 50% market share, its strong potential for upside surprise to financial estimates throughout year, and its stock price, 70% off recent highs, yields very attractive buying opportunity. 19-Apr-00 BEFORE THE OPEN Efficient Ntwrks (EFNT) 85 5/16: Kaufman Bros upgrades to BUY from ACCUMULATE rating and price target of $145 following strong sales in Q3. Also, WR Hambrecht reiterates STRONG BUY and and $175 price target calling EFNT the fastest growing company in the DSL market. 03-Aug-00 09:42 ET Efficient Ntwrks (EFNT) 49 1/4 -5 13/16 (-10.5%): Jefferies downgrading to HOLD from BUY, noting that DSL provisioning was transitioned from SBC to Advanced Services Inc. (subsidiary of SBC) because of regulatory issues related to the acquisition of Ameritech. Believes that SBC channel increased significantly from the March qtr. Also believes potential strike at Verizon (VZ) could impact CPE modem shipments. 18-Jul-00 13:34 ET Day Trader : It's not what you buy, but when you buy it... In this analyst's opinion, locating great companies is a far less daunting task than determining when to put your money on the table. It doesn't take much market sophistication to know that Cisco, Intel, Microsoft, Amgen fall into the category of great companies. With respect to less trumpeted names, it simply takes a perusal of the Briefing.com Earnings Calendar to uncover issues with potential to become the tech luminaries of the future.... We would look for companies with strong revenue growth (off a meaningful base), healthy margins and plenty of analyst coverage (at least 6 following analysts)... Stocks that stand out from the host of companies releasing earnings over the past two days include Efficient Networks (EFNT 89 11/16 -12 5/16) and Copper Mountain Networks (CMTN 98 -25 11/16). If such great companies, why are both issues trading sharply lower today? Timing... It came as no surprise to investors that both companies delivered better-than-expected quarterly results. In fact, the anticipation of these compelling growth numbers (CMTN and EFNT grew revenues 250% and 1225%, respectively) had been priced into the stocks before the numbers were ever released. In Copper Mountain's case, the stock rallied 40% in the week leading up to the report.... The outlook for companies like Copper Mountain and Efficient Networks remains bright, despite this short-term retracement in price. No question in our mind that many institutional investors around the country are cheering this opportunity to pick up both stocks at discounted levels. Their only problem is determining the appropriate entry point. Considerations include both a short- and long-term market view, as well as individual support levels for the stocks... Copper Mountain currently approaching near-term support at the $96 3/4 level. A break of this line could set up a decline to much firmer support at the $78 mark, a level that we would expect stock to use to stage a double-digit rally... EFNT faces important levels at $79 (200-day moving average) and $72... Another important note concerning Copper Mountain. We wouldn't expect to see another 40%, pre-earnings moves any time soon. After beating Wall Street views by just one penny this time, it is unlikely that next quarter stock will make the final list of names that momentum players look to rally into earnings. -- Damon Southward, Briefing.com 14-Jul-99 13:30 ET Efficient Networks (EFNT) : Broadband... DSL.. Cisco... This is about all the information needed to determine if Efficient Networks will be a successful IPO. Few of the traders who bid this stock up on its debut will take the time to dig into the company's financials or ask questions about margin projections or competitive outlook. The fact that EFNT competes in the hot digital subscriber line market will be enough to make the stock a priority "investment" candidate... The Business: Efficient Networks designs high-speed digital subscriber line customer premises equipment for the broadband access market. The company's systems have been deployed by leading telecommunications services company's such as BellSouth, Covad Communications, Hong Kong Telecom. In this space, EFNT competes with publicly traded companies Systems (CSCO), 3Com Corp. (COMS) and Netopia (NTPA)... This morning, lead underwriter CS First Boston raised the pricing range on the deal from $10-$12 to $13-$15. Assuming a $15 pricing, EFNT would have a trailing Price/Sales ratio of 69 and a market-cap of $540 mln... Financials: For the 9-months ended March 31, the company lost $14.1 mln (compared to yr-ago loss of $5.8 mln) and logged revenues of $7.14 mln (up 164% from the 1998 period). In the first nine months, Covad Communications and Lucent Technologies accounted for 19.6% and 10.2% of EFNT's net revenues. Several of company's strategic partners hold equity stakes, including Texas Instruments (11.6%) Siemens AG (10.3%) and ADC Telecommunication (5.9%). -DS EPS (0.18) to (0.14) to (0.16) to (0.03) Jun00 briefing Revs 7.7 to 12.2 to 26.4 to 61.7 to 101.9 Jun00 Chart looks like bottom supprt at $40 and $45. Bearish 200/50/10 stack 52-Week Low on 4-Oct-1999 $31.00 Recent Price $57.00 52-Week High on 27-Mar-2000 $186.813 Share-Related Items Market Capitalization $3.15B Shares Outstanding 55.2M Float 8.30M Price/Book (mrq) 4.08 Price/Earnings N/A Price/Sales (ttm) 12.03 Debt/Equity (mrq) 0.36 Total Cash (mrq) $501.1M Short Interest As of 8-Aug-2000 Shares Short 1.52M Percent of Float 18.3% Summary Customer Covad is one hurting puppy. I really don't like DSL stocks so I am biased. I think people will eventually switch to optical cable in head to head competition. This company has to make a profit soon or it will be in the teens like Covad. revenue growth is impressive. Entry at $40 seems to be good. Jack