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

To: CAtechTrader who wrote (25693)	12/18/2000 11:14:57 AM
From: Dealer	Read Replies (1) \| Respond to of 65232

EXTR--(Source YAHOO..take this for what it is worth...buying opp.???? dealie) Extreme Networks (EXTR) 62 5/8 -8 5/8: Extreme is selling off 12% today in part due to a weak tech market thanks to Microsoft's warning and negative sell side comments on the tech heavyweights such as SUNW, EMC, IBM, HWP and ORCL. Specifically for Extreme, however, is that we are hearing that the stock is being hit by a CFRA report. CFRA stands for the Center for Financial Research and Analysis. Their website states the mission of this independent financial research organization is to warn investors and creditors about companies experiencing operational problems and particularly those that employ unusual or aggressive accounting practices to camouflage such problems. That sounds terrible, so when they issue a report people react. In Extreme's case, they obviously fall under the first category of as there is no implication of camouflage. We say, "hold on a second, there's nothing new here!" Essentially, there were six categories that worried CFRA: 1) inventory levels, 2) operating cash flow, 3) allowance for doubtful accounts, 4) gross margin, 5) accounts receivable and 6) insider sales. 1 was disclosed on Extreme's SepQ conference call in October, 2 was public info in the company's 10-Q in mid-November, as for 3, levels in SepQ did not increase commensurately with accounts receivable, 4 and 5 again were public back in October, 6 has been filed with the SEC...The higher inventories are not alarming as management explained in October that the company intentionally built-up inventories of critical components and now this inventory is being worked off. Bottom line, this report is just a repackaged version of already public information, there's nothing new here. -- Robert J. Reid, Briefing.com