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

To: Mark[ox5] who wrote (522)	10/9/2000 2:53:22 PM
From: Mark[ox5]	Read Replies (1) \| Respond to of 675

Hmm 33% rally in 2 trading days. This reminds me of a New Economy stock or something.

To: Mark[ox5] who wrote (522)	10/11/2000 3:56:09 AM
From: add	Read Replies (1) \| Respond to of 675

Ok Mark, its impossible to have a reasonable discussion w/ you. You won't admit that 10% sequential growth is pretty good for legacy biz. You won't admit that 35% gross margins ( more than 40% after full integration w/ TLTN, according to the CC ) is very good. Nothing wrong w/ the TAP biz. Same w/ CPI. Puts a nice $8 or so price floor to WSTL. The CPE biz is about 2/3 of EFNT's with similar forward expected growth rates. EFNT's may have better GMs because of the SDSL biz, but it also requires greater operating expenditure. Net, WSTL is profitable and EFNT is not. So my point is that WSTL should be at least 1/2 of EFNT based on CPE plus $8 for the other biz. EFNT at $36 would imply $26 for WSTL. Based on this fundamental analysis, either WSTL will rise more than EFNT or EFNT will fall more than WSTL. Right now, it looks more like the latter although the last few days haven't gone that way. The market is trying to figure out valuation right now so eventually it will. I expect this to occur after the earnings report, certainly by the end of November. This is no hype or EFNT bashing or being difficult. The EFNt/WSTL ratio has come down quite a bit this year and will continue to do so. You can ignore it and bury your head if you like. I hope EFNT goes up quite a bit, and if it does I expect WSTL to go up more. I don't wish anymore downside for anyone in this market.