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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (3215)	9/23/2000 12:37:49 PM
From: techguerrilla	Respond to of 65232

BEAS was a major recommendation . . . . a few months ago by A.G. Edwards to their private clients. At the same time they were strongly recommending Ciena. FWIW. Both have performed very well since then. -john-

To: Jim Willie CB who wrote (3215)	9/23/2000 4:46:21 PM
From: Jill	Respond to of 65232

I like BEAS too Jim. Maybe we could discuss further, its been on my watch list a while. Some stuff on EXTR for porchers: Why is this company currently so hot? Because they had 37% quarter over quarter growth, but apparently part of that was due to acquisition of 3Com’s Corebuilder customers. How much is a good question, and can that growth continue? They compete with Cisco, Foundry and Cabletron, and if their growth rate is higher than that of Cisco, you can see why this stock is getting so much attention. However if that one time acquisition inflated their sequential growth, and contributed to unrealistic expectations, stock could get hit with next earnings report. It’s really a matter of extr’s execution: From H&Q's 7/20/00 report on EXTR: "Extreme is executing on several initiatives that are generating robust growth. The company's integration of 3Com's salesforce is progressing extremely well and it is providing strategic sales resources." " The addition of the 3Com salesforce contributed about $4-5 million of the sales upside, but most of the upside came from organic growth." "Extreme grew sales 37% sequentially. We estimate that it grew 30% after excluding the contribution from the additional 3Com salespeople. We believe that this rate is higher than the growth in layer 3 switching for Cisco, Foundry, and Cabletron." From H&Q's 3/21/00 report on EXTR: As part of a major restructuring, 3Com (COMS,$68 49/16,MP) announced that it is ending the production of its CoreBuilder layer 3 switch and that it is recommending customers migrate to Extreme's product line. Extreme is also assuming the CoreBuilder sales and marketing organization, effective April 3. Extreme will issue 3Com 1.5 million warrants in exchange for the operations. The transaction will enable Extreme to double its current sales organization and provide offices in many countries that Extreme does not currently serve. Extreme is also gaining referrals to more than 100 large accounts. "We feel that the exchange is quite favorable for Extreme, as the sales and marketing operations are extremely valuable in today's competitive labor markets. In addition, Extreme is expanding its distribution model at a critical time; it is introducing upgrades across its entire product line and it is penetrating several new markets. Extreme is also gaining access to a sizable installed base of users that have demonstrated a willingness to buy products from vendors other than Cisco." I'm going to hunt down some more info. Too bad we don't have Downsouth (NTAP's resident genius) researching EXTR.