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Technology Stocks : Sycamore Networks Inc-(SCMR) -- Ignore unavailable to you. Want to Upgrade?

To: SJS who wrote (1490)	9/12/2000 12:41:11 PM
From: Steve Warkentin	Respond to of 2249

and his reasoning for a huge sweeping downgrade is very vague to say the least.....what is his track record?

To: SJS who wrote (1490)	9/12/2000 8:27:02 PM
From: puborectalis	Read Replies (1) \| Respond to of 2249

Fayad Abbasi covers technology for IDEAglobal. Fayad previously was president and founder of Volantec, a Texas-based manufacturing company, and he served as the portfolio manager of the William C. Conner Foundation. Fayad received his undergraduate degrees at the University of Pennsylvania and holds a master’s in business administration from the Neeley School of Business at Texas Christian University.

To: SJS who wrote (1490)	11/10/2000 9:26:27 AM
From: Jack Hartmann	Read Replies (2) \| Respond to of 2249

Steve, ran into this 8/29/00 briefing.com article Sycamore Networks (SCMR) 151 1/2 -6 1/2: One of the few pure-play optical networking companies reported earnings last night, beating earnings estimates by two cents with a profit of eight cents, and beating revenue estimates of $70-80 mln with an impressive $90.4 mln. Sycamore also reported that its customer list grew by two and now stands at nine, which is somewhat comforting as it has further reduced its reliance on Williams Communications (WCG), its first and largest customer. The only very slight blemish in this report was that deferred revenues slipped slightly, but the timing of field trials can affect this number and it most likely does not indicate any imminent weakness in SCMR sales. In fact, the company issued guidance of roughly 15% sequential revenue growth for coming quarters. Yet with a market-cap of $38 bln on an earnings run-rate of $81 mln, the key for Sycamore is not the coming few quarters, it's the coming few years. With that in mind, investors need to watch the SN16000 -- that's Sycamore's latest and most important product, the optical switch. Sycamore's optical switch is not all-optical; it has an electronic switch fabric, similar to offerings from Ciena (CIEN) and privately held Tellium. Though all-optical switches are expected to be the future in this industry, they are not yet a reality and are not expected to be commercially available until next year. So the opto-electrical vendors like Sycamore are getting a head-start. Sycamore does have its first customer for the switch -- 360networks (TSIX) -- and Williams is in trials. In the short term, the SN16000 will probably enjoy success due to its early-mover advantage. The key battle will come next year, when all-optical switches from Lucent (LU), Corvis (CORV), Nortel (NT), Cisco (CSCO), and many more should become available. Will Sycamore's opto-electrical switch be competitive? Will Sycamore be able to transition to a competitive all-optical product? These are critical questions for Sycamore, and answers are still several quarters off. Through year-end, Sycamore will benefit from the open playing field that lies ahead both in the stock market and the optical market. In the stock market, there is a shortage of pure-play optical companies, which is producing fantastic valuations for those that are already public. In the optical market, there is a shortage of optical switches as we await the all-optical solutions. Both of these playing fields will become much more crowded in 2001, which is when Sycamore will have a challenge sustaining its valuation. Today's sell-the-fact declines after the stock has more than tripled since its April low will probably be short-lived, but they may be a hint of the more challenging times that lie ahead for Sycamore next year. - Greg Jones, Briefing.com After a 53% sequential growth quarter, do you think that 15% number was a mistake by briefing. I did not see it discussed on this thread after reading the last 500 posts. If true, it would be one factor in explaining the sell off. Jack