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To: Johnny Canuck who wrote (28447)	9/26/2000 11:10:27 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68115

Company: Cosine Communications (proposed Nasdaq symbol: COSN) Business description: Cosine makes switches and software for network service providers. The company's IPSX 9000 service processing switch allows service providers to offer applications such as virtual private networks, firewalls, and broadband access. The price for its IP delivery service platform ranges from $73,000 to several million dollars, based on hardware and software configuration. Competition: Axent, Checkpoint Systems, Cisco Systems, Nortel Networks, Springtime Networks Offering: 10 million shares Price range: $20-$22, up from $15-$17 Lead manager: Goldman Sachs Street poll: Red Hot Red Herring take: Cosine Communications fits in between telecommunications carriers and a more price-sensitive end user. Although the company generated revenue of just $11.3 million for the six months of 2000, its processing switch has some serious traction -- Cosine's order backlog was $49.8 million as of June 30. The scalability of its switch gives end users affordable access to powerful software tools. Friday's price increase in the face of a difficult broader market indicates an extremely strong order book, and a surefire sign that Cosine will open at a triple-digit percentage to its offering price. Company: Proton Energy Systems (proposed Nasdaq symbol: PRTN) Business description: Proton Energy Systems makes proton exchange membrane (PEM) electrochemical products that produce hydrogen from water and electricity. The company's regenerative fuel-cell systems, when completed, will combine hydrogen-generation capabilities with a fuel-cell power generator to create an energy device that can produce and store hydrogen fuel it can later use to generate electricity. Proton Energy hopes to deliver its first commercially configured regenerative fuel-cell system for field testing by 2002. The systems will initially target the back-up power needs of industrials and laboratories. Future markets, expected anywhere from 2003 to 2005, include automobiles. Competition: Ballard Power Systems, Fuelcell Energy, H Power, United Technologies Offering: 7 million shares Price range: $8-$10 Lead manager: Morgan Stanley Dean Witter Street poll: Hot Red Herring take: The key to Proton Energy's technologies is the integration of hydrogen storage and fuel cells as a single unit. Fuel-cell companies are seen as the market's answer to high energy costs. Last month's trio of alternative energy companies -- Active Power (Nasdaq: ACPW), Millennium Cell (Nasdaq: MCEL), and H Power (Nasdaq: HPOW) -- are trading 170 percent above offering price, and 70.9 percent above their first-day close. Valuations are extremely bullish, and we would expect to see a large price-range increase ahead of the offering. Proton Energy's stock should command a huge aftermarket pop because of the company's limited stock float, 32 million shares. Active Power's $2.6 billion market cap, for example, implies a price of $81 a share for Proton Energy's stock. Company: Elastic Networks (proposed Nasdaq symbol: ELAS) Business description: Elastic Networks provides digital subscriber line (DSL) communications products utilizing Ethernet technology. Unlike conventional DSL technologies, which have fixed upstream and downstream bandwidth, Elastic's Ethernet technology allows for both upstream and downstream access speeds of up to 4 megabits per second. Nortel Networks, which is selling 1 million shares as part of the offering, will hold a 46 percent stake in the company. Competition: Cisco Systems, Copper Mountain Networks, Lucent Technologies, Net to Net Technologies, Tut Systems Offering: 7.8 million shares, 1 million by Nortel Price range: $10-$12 Lead manager: Chase H & Q Street poll: Hot Red Herring take: The digital subscriber line market has never lived up to expectations established by early component manufacturers such as Copper Mountain Networks (Nasdaq: CMTN) and Tut Systems (Nasdaq: TUTS), which are off 63 percent and 38 percent, respectively, from their annual highs established just a few months ago. Carrier difficulties implementing DSL over copper wires has slowed adoption, but Elastic's Ethernet-based technology has plug-and-play functionality, making administration much easier, and provides improved performance over existing asynchronous DSL services.