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Technology Stocks : Exodus Communications, Inc. (EXDS) -- Ignore unavailable to you. Want to Upgrade?

To: JakeStraw who wrote (2998)	1/3/2001 12:31:09 PM
From: Dave Gore	Read Replies (1) \| Respond to of 3664

Thanks and you are right. I am biased because I view the stock price action lately as manipulative in that there has been no negative news or change in analyst sentiment according to Zack's in the last 30 days. In fact, the the sentiment has grown slightly more positive. To have a stock drop more than 20 points in two weeks causes panic in many investors eyes, but the fact is that there has been no negative news coming from the Company. I want people to know this. Many panicked out at 15+ this morning and too many always seem to buy high and sell low. Too be honest, I think the 9 point rise in 30 minutes 18 days ago was insane as well! it goes both ways. No stock should go up that fast on no news. LET'S TALK ABOUT SOME NEGATIVES: I would be much tougher on this Company if it announced bad news or was failing miserably in some areas or was priced at $35-40 again, but at $16 I can't see any negatives that account for it. Let me explore a couple slight negatives, but again, I just don't think there are enough negatives to account for the current weakness. I guess the main reason is that the Company is not posting profits, but even that is not a big worry among any analysts I've found, since all companies in this sector probably could post profits (or at least smaller losses) if they wanted to. However, because of the current heavy demand and the extremely strong growth predicted in this sector by both the Gartner Group and Foresster Research, Web-Hosting companies are plugging revenues and potential profits back into growing the infrastrcuture. EXDS did have a problem, in my opinion, with too much emphasis on smaller companies, but in the last year they have been successfully targeting larger Fortune 500 companies. The proof of their success is a growth of 51% in the enterprise area in just one quarter. The current weakness is apparently due to fears of IT cutbacks, but with some many big "brick and mortar" names like WalMart and others finally moving to the web, I see EXDS being far more insulated than other companies. CONCLUSION: I will get a lot more criticial on this company when it is back to $35-40. Right now, I can't find any negatives to account for the stock price. Feel free to spend the time yourself. I do this for free and quote my sources, so it should be easy. Nobody should ever buy a stock based on the postings of anyone else!