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Technology Stocks : Efficient Networks Inc - (Nasdaq- EFNT) -- Ignore unavailable to you. Want to Upgrade?

To: Mark[ox5] who wrote (453)	9/20/2000 2:31:10 AM
From: Scrapps	Read Replies (2) \| Respond to of 675

A couple of thoughts. One thing I've read or heard is SBC is back on track and has recovered to some degree in their CPE installs. Another is NorTel was one of the companies BA had a deal with before the BA/GTE merger making them into Verison. Nortel was using Efficient products from my uderstanding. I feel EFNT will do fine and the price now is a bargain. If you are looking for very short term profits this isn't the play, but a few weeks could be very good.

To: Mark[ox5] who wrote (453)	9/20/2000 2:39:39 AM
From: Herschel Rubin	Read Replies (1) \| Respond to of 675

Mark, Good analysis, but a couple of comments. First, you said: Now this should be a 1 Q hiccup due to SBC poor performance of deployment, but as we all know this market basically cares about 1 week not 6 months, so I think the price performance over the past 10 days or so (40% fall) is indicative of reflection of Westell basically guiding analysts to not expect any CPE growth for the Q, along with whatever EFNT is whispering to the analysts in last week's presentations and this week's DSL conference. On the surface I would agree, but then why is EFNT getting taken out to the woodshed and WSTL is not. It just doesn't add up. I was at the CSFB conference (I post as AlanGreenSpam on Yahoo) and I saw no hints that they would be whispering one thing to analysts, especially after an upbeat PowerPoint presentation in which they reassured those present that they expect to be on target with expectations of a breakeven quarter. I also don't think they'd go about 'whispering' to analysts that contradict the content of their presentations. Furthermore, the soon-to-be adopted SEC Selective Disclosure Laws would most certainly frown upon that type of behavior. If, indeed, something disastrous has happened since those presentations, you would think we would have heard about it from indirect sources, for example from SBC or WSTL or COVD. But to the contrary, we hear that SBC is improving their run-rate as we speak and COVD floated their encouraging pre-announcement. We should keep in mind that the SBC July-August slowdown is in the past and would have been factored into the projections made by EFNT at these conferences. Given that SBC is getting back on track, I wouldn't expect an EFNT revenue shortfall worse than those those expectations could result from SBC at this point. The other wildcard is Korea which will most likely help make up for the SBC shortfall. That's the virtue of EFNT's sales model vs that of WSTL: EFNT is diversified via its hefty overseas DSL business.

To: Mark[ox5] who wrote (453)	9/20/2000 2:45:10 AM
From: Herschel Rubin	Read Replies (2) \| Respond to of 675

Mark, Good analysis, but a couple of comments. First, you said: Now this should be a 1 Q hiccup due to SBC poor performance of deployment, but as we all know this market basically cares about 1 week not 6 months, so I think the price performance over the past 10 days or so (40% fall) is indicative of reflection of Westell basically guiding analysts to not expect any CPE growth for the Q, along with whatever EFNT is whispering to the analysts in last week's presentations and this week's DSL conference. On the surface I would agree, but then why is EFNT getting taken out to the woodshed and WSTL is not? It just doesn't add up. I was at the CSFB conference (I post as AlanGreenSpam on Yahoo) and I saw no hints that they would be whispering pessimistic prognostics to analysts, especially after an upbeat PowerPoint presentation in which they reassured those present that they expect to be on target with expectations of a breakeven quarter. I also don't think they'd go about 'whispering' information to analysts that contradict the content of their presentations. Furthermore, the soon-to-be adopted SEC Selective Disclosure Laws would most certainly frown upon that type of behavior. If, indeed, something disastrous has happened since those presentations, you would think we would have heard about it from indirect sources, for example from SBC or WSTL or COVD. But to the contrary, we've heard that SBC is improving their run-rate as we speak and COVD has floated their encouraging pre-announcement. We should keep in mind that SBC's July-August slowdown is in the past and would have been factored into the projections made by EFNT at these conferences. Given that SBC is getting back on track, I wouldn't expect an EFNT revenue shortfall worse than those those expectations that already factor in SBC's mid-summer woes. The other wildcard is Korea which will most likely help make up for the SBC shortfall. That's the virtue of EFNT's sales model vs that of WSTL: EFNT is diversified via its hefty overseas DSL business. Another explanation, at least for Monday's plummet in EFNT share price, is that on Monday (actually Sunday here in the States), the Asian markets took a drubbing, especially South Korea, which was down 12% intraday and closed down 8%. It is likely that when Wall Street opened on Monday, some viewed the South Korean market instability as a threat to EFNT's reliability on Hanero etc. of Korea. Well, that situation has stabilized now and South Korea is up 6.1%