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Technology Stocks : Openwave Systems (formerly Phone.com & Software.com) (OPWV) -- Ignore unavailable to you. Want to Upgrade?

To: Probart who wrote (35)	4/6/2001 12:55:40 PM
From: Rusty Johnson	Respond to of 184

Bringing Them In Briefing.com With earnings season finally upon us, we think that shorts will finally begin to reel in positions, driven, at the very least, by a desire to reset positions at higher prices. The advance in equities will be a function of the sharp reductions in earnings estimates that have occurred in the large-cap technology leaders over recent weeks, and the subsequent price implosions in the stocks. It finally feels as if most of the near term earnings risk has been priced into the market. This could create a scenario where stocks begin to experience positive reactions to earnings warnings. We believe that this is an angle traders should focus on this earnings season. A bevy of technology sector names have experienced share price gains that more than adequately reflect the near term earnings risk. While this does not necessarily mean that they have established lows for the downturn, we think the combination of high short-interest and oversold technicals will set many of these names up for a run in price. Attached is a list of stocks that we feel have the potential to build value this earnings season. Some of these names will work out, while others continue descent in response to warnings that are even more severe than had been factored into the stock price. We present this list simply as a starting point. It is difficult to figure out which companies will issue earnings preannouncements, and almost impossible to determine when exactly the warnings will be issued... Each morning will present new trading opportunities. Our focus would be on companies that manage to stay within 30%-35% of analysts' earnings expectations. Company % Decline Since Last Report Estimate Trend (8 wks/13 wks) Tentative Forward P/E Short-Interest Float Emulex (EMLX) 87% -10%/-18% 13.2 3.45 mln 72 mln Openwave (OPWV) 72% 0%/+800% 22.5 4.1 mln 142 mln McData Corp (MCDT) 69% -10%/-18% 23.3 6.3 mln 18.3 mln Cisco (CSCO) 62% -44%/-50% 21.1 64.2 mln 7.153 bln