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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Rande Is who wrote (54080)	8/10/2001 11:53:29 AM
From: fastcats	Read Replies (1) \| Respond to of 57584

I agree, Rande, and want to take this opportunity to thank this board for putting FiberCore on my radar screen. After attending FiberCore's annual meeting, 7/27, and listening to the CC yesterday, I am taking advantage of the weakness to add to my LT positions. This company has a dynamite business plan and is very focused in its execution. They have practically no ties to the telecom/long haul market. They do not make cable, rather they sell to the cable makers, which means they do not compete with their customers, something GLW, NT, JDSU nor ALA can say. They have worldwide exposure, innovative R&D focused on improving manufacturing processes and lowering costs, as well as the development of fiber for new markets. Finally, and not insignificant, much of their effort is directed to the "last mile", the greatly UNDERbuilt piece of the fiber network that is keeping many from enjoying its benefits. Most of the questioning in the CC concerned the customer in default, a situation which apparently developed over the last 2 weeks. That customer is one of two that each account for about 10% of revenues, has future orders on the books (contributing to the impressive backlog), but also has another source of fiber. Reading between the lines, questioners seemed concerned that, even if resolved amicably, it may cause erosion of margins if the competing source is underpricing FiberCore and if not resolved, it could put a serious dent in future revenues. My take is that even if negotiations break down, it will probably result in a hiccup at most. Management seems too savvy and too focused to squander the strength the company has built in a miserable market. And don't forget Tyco owns a big chunk with a seat on the board. Faillure just isn't in the cards. fc