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Technology Stocks : Corvis Corporation (CORV) -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (335)	3/6/2001 3:52:52 PM
From: James Fulop	Read Replies (1) \| Respond to of 2772

>>In business, when the phone is ringing you think it will never stop ringing. Then one day it does. Then you get to the other side to that which is that you think it'll never ring again. Then one day it does. No matter how many times you go through that cycle you never really seem to get to the point where you can accurately predict when that is going to happen. The most you can do is to limit the damages when it does by reacting as quickly as possible to the new situation.<< And here I thought all of that would change with the new supply chain management software being used these days...<g> On a more serious note, thanks for that explanation. It sounds very reasonable to me. Cheers.

To: GraceZ who wrote (335)	3/6/2001 7:59:16 PM
From: starpopper	Read Replies (1) \| Respond to of 2772

Corvis and "inventory problems"!? CORV doesn't have inventory problems they have sufficient inventory to supply customers needs beyond the lead time needed for ordering new supplies! My understanding is that CORV has filled just over $60M in orders out of a 3 year BACKLOG of over $600M! $200M is expected to be realized in 2001! Their balance sheet lists huge inventory levels which are obviously pre-positioned to fulfill some portion of that backlog. NUFO probably experienced a spike in demand from CORV last year and have seen them slow or stop new orders...that's THEIR problem! This makes perfect sense for CORV in this market of low visibility! If CORV has enough inventory to satisfy 6mos-1yr of the backlog, why in the world would they continue to buy the rest of the supplies now when it would only need about 3 months of lead time to take delivery in the future. Especially if CORV customers stretch out delivery of their orders due to "low visibility", and especially if a prolonged downturn lowers the cost of acquiring those supplies in the future! With a market cap of $2.75B (at $8/shr), $1B in cash ($3/shr), and a net backlog of orders valued at over $500M ($1.5/shr), I have no problem backing up the truck! Book value for this puppy is $4.50 and the shorts have made tons of money on this one already. I firmly believe this is the last round of profits for the shorts in CORV, they won't dare short this baby below $6! They MAY short it to $7 and the momentum may take it to $6, so I'm waiting to triple my holdings between $6-$7 which will give me an average cost of $8.5! I love this game! $weet Dream$ $tarpopper