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Technology Stocks : Stratex Networks, Inc. (STXN) -- Ignore unavailable to you. Want to Upgrade?

To: Shankar Kumar who wrote (1224)	12/5/2000 4:01:13 PM
From: Rob Preuss	Read Replies (1) \| Respond to of 1762

It makes no sense at all. I do not think that we're missing anything. I think this represents general investor nervousness about the market for telecommunications equipment manufacturers. There is a perceived slowdown in the telecommunications services market which is expected to become a slowdown for the telecommunications equipment market (because the service providers, our customers, will have less money to spend on infrastructure... and less incentive to continue aggressive buildout). So goes the theory. But I think reality is somewhat different. I think there is no slowdown in wireless services and no slowdown in wireless equipment... yet wireless telecommunications equipment manufacturers like STXN are being lumped together with the non-wireless folks. STXN had record orders and a huge backlog at the end of the last quarter, it just got another $15 M contract (which included a $4 M order which they shipped early this quarter), and they've solved their parts shortage problems... I see no reason why we shouldn't make (or beat) earnings and revenue expectations for this quarter and next quarter as well. Then, in late March, we should see the introduction of those new ultra-broadband products... Anyway, the afternoon downturn which started at 3:00 PM appears to have been reversed. It looks like we'll close at 15+9/16 today... about the same as yesterday. That's a bit disappointing given the strong rise in the NASDAQ today, but maybe it means the weak hands will be gone for awhile. Rob