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Technology Stocks : Juniper Networks - JNPR -- Ignore unavailable to you. Want to Upgrade?

To: Bruce Brown who wrote (1747)	10/13/2000 11:11:41 PM
From: Warren Gates	Respond to of 3350

Juniper is in the sweetspot now of where the current bottleneck is, the edge of the core. Nortel moved the optical backbone to OC-192 and Cisco wasn't swift enough to take advantage. The past 2 quarter of Juniper's revenue and the terabit router portion of CISCO, reflects this catch-up demand. I would expect the JUNIPER's number going forward will start tracking more the growth of the optical backbone which is about 30% sequential. Still, very good growth, but the risk may be in the market starting to anticipate these 70%+ sequential growth which is surely not sustainable. A stock being undervalued/overvalued doesn't really work in this kind of market. Relative valuation works and should be used in comparing these high-flyers in the same sector against each other. Example would be PMCS which has almost the same quarterly number as Juniper but is half the sequential growth. PMCS is about 25 billion market cap and Juniper is about 70. So right away, in terms of relative valuation, the market may have missed something here. These kind of evaluation should be used only in weight risk-to-reward factors.