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Strategies & Market Trends : Pump's daily trading recs, emphasis on short selling -- Ignore unavailable to you. Want to Upgrade?

To: xcr600 who wrote (1791)	6/8/2001 1:21:52 PM
From: PaperChase	Respond to of 6873

Yes, I am well aware of MFNX's debt level. The long play on MFNX at this price level is that they will get bought out. The short play on MFNX is too assume they will be crippled further by sector woes and their debt level. The key perception that I think is wrong is to compare MFNX with the CLECs that have failed and/or are failing, and to assume that MFNX is not an attractive takeover target. The CLECs like NPNT are not attractive takeovers when there equipment is sitting right next to the Baby Bell's equipment. Hence, potential buyers waited for CLECs to file bankruptcy to buy their equipment/customers at liquidation prices. There is a lot of premium associated with MFNX's metro network. It is metro networks that everybody has plans to build out with fiber now that the long haul market is saturated. This saturation by players does not exist in the metro broadband markets. I think I will enter MFNX long around $3-$4, a pure speculative play. If they don't get bought within 6 months then I will assume my investment will go to zero. So, as you can see, I am well aware of the investment risk. Quite frankly, I'd buy MFNX as a speculative play before I would TIVO. You'd have to put a gun to my head to be long on TIVO. <g>