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To: Mark Fowler who wrote (7634)	6/16/2001 12:22:28 AM
From: Bill Harmond	Read Replies (2) \| Respond to of 57684

Confidence here that Ciena and ONI are making their numbers. We'll see.

To: Mark Fowler who wrote (7634)	6/16/2001 1:05:25 AM
From: Bill Harmond	Respond to of 57684

From Briefing today: Riverstone Networks (RSTN) 15.30: The timing is ironic. On the same day Nortel (NT) warns, Salomon Smith Barney upgrades the shares of this manufacturer of routers for service providers in the Metropolitan Area Network (MAN). Salomon's main point is that the JDS Uniphase (JDSU) pre-announcement bears little on the outlook for RSTN, and in fact, it simply reaffirms Salomon's view that the metro, data networking and enterprise are the three themes that are working. The JDSU warning shows weakness in long haul optical, not metro. Also, it sees a considerable differential between the systems companies and the components companies as systems companies are likely to show recovering results long before the components companies. Also, RSTN's relative valuation looks attractive as RSTN sells at a steep price to sales discount and well below Extreme (EXTR) and ONI Systems (ONIS) on a p/e basis.....Briefing.com is a bit more skeptical on RSTN. Nortel's warning is yet another example of an emerging theme. All optical is weak, but it is the service provider/carrier side of the business that is much weaker than the enterprise side. Extreme and Foundry (FDRY) recently made positive comments at an investor conference, however, they are more exposed to the enterprise market whereas Riverstone has more exposure to the carrier side. Some of its larger customers are WorldCom (WCOM), Tellabs (TLAB), Verizon (VZ). WCOM and VZ have spoken of reducing cap-ex spending while TLAB recently was less than bullish at an investor conference. On the positive side, RSTN is entering into a strong new product cycle with recent product launches at SuperComm. Also, its Sonus partnership and Tellabs partnership are reportedly delivering ahead of plan. Our opinion is based on the macro environment and it's ugly out there. The company reports after the close on 6/20. Salomon expects Riverstone to beat numbers despite the tough environment. Nevertheless, it's difficult to get excited with cap-ex slowing for infrastructure buildouts. -- Robert J. Reid, Briefing.com

To: Mark Fowler who wrote (7634)	6/18/2001 12:01:44 PM
From: Harvey Allen	Respond to of 57684

Nortel write-down is tip of iceberg for tech groups Many of the companies involved and some analysts argue that these are simply book-keeping adjustments that have little significance. A big accounting charge would have no impact on real-world issues like cashflow or the company's bank covenants, said Tony Muller, chief financial officer at JDS. According to this view, it makes no difference if JDS and SDL agreed an all-stock deal at inflated prices: since they were simply swapping paper, the deal was worth as much at $14bn as it was at $40bn. However, that argument ignores one uncomfortable fact from the tech stock bubble: JDS, Nortel and others could have used their own, highly-valued stocks during the bubble to buy assets that would have a lasting value, rather than other over-heated shares. news.ft.com