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Strategies & Market Trends : The Amateur Traders Corner -- Ignore unavailable to you. Want to Upgrade?

To: Tom Hua who wrote (5807)	1/30/2001 10:11:36 PM
From: GregS	Read Replies (1) \| Respond to of 19633

Tom, I too am short NUFO, have never been able to be long this gem because of lousy gross margins, which lead me to believe it will be difficult for this company to every achieve profitability. GM for the year was still a disgustingly low 19.9%, even the 4Q GM of 31.3% is never going to get the bills paid. I compare this piggy to JNPR which has higher annual revenue growth and GM somewhere in the 60's, why would I ever own this over JNPR? JNPR had a nice little run also after their terrific earnings, but has since given that run back, plus some. I think NUFO will do the same. Using any valuation method with which I am familiar, this is one expensive little pig, more expensive than JNPR, AMCC, or JDSU. Also, their lack of guidance for Q1 of 2001 sent red flags up, leading me to believe their optimistic guidance is more an effort to pump up the stock price so insiders can complete registered sales than an honest look at where their business is heading. That being said, I do think we are in for a rough morning with this little piggy. Hold on tight, and let me know when you hit it again. Thanks for your good work.