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Technology Stocks : Brocade Communications Systems,Inc. (Nasdaq-BRCD) -- Ignore unavailable to you. Want to Upgrade?

To: SouthFloridaGuy who wrote (802)	3/9/2001 8:40:57 PM
From: Jack Hartmann	Read Replies (1) \| Respond to of 1583

This baby goes to sub-$10 this year. Hmmmm. Worst case is $5 which is the approximate 2 year low price 3 splits adjusted. Since we had the Nasdaq hit a two year low today, anything is possible in the world of investing. I'll be betting against that though. BRCD is cash flow positive and has 211M cash in the bank. It can fund its own expansion without dependence on a secondary ulike many techs. If the EPS and revs remains flat for four quarters and only earns 0.48 for 2001 calendar year, the PE would be 27. That probably will be ok if the 2002 picture looks better. The market has always paid a premium for market leaders. BRCD has 61% share in its space. Also SUNW should kick some revs in the last quarter. One thing about BRCD and the sector, IT managers can postpone spending for about three quarters, but will have to spend money as storage needs arise. It is not discretionary item like Coke and Marboros. Jack

To: SouthFloridaGuy who wrote (802)	3/12/2001 10:38:55 AM
From: MGV	Read Replies (1) \| Respond to of 1583

MCDT has an analyst day scheduled today to promote new 32 and 64 port switches. This could pressure BRCD. OT "This baby goes to sub-$10 this year. " Here is a more rational prediction. More likely, you will have to change your name - again.