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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (35405)	12/5/2001 4:21:48 PM
From: Johnny Canuck	Respond to of 69189

05 Dec 2001 12:09 ET **** Inrange Technologies (INRG) 10.85 +1.90: Not as well known as other storage switch makers like Brocade (BRCD) and McData (MCDT), Inrange sells switches and other networking products for storage, data and telecom networks. It typically serves the large enterprise market, highlighted by its FC/9000 switch which can be scaled up to 128 ports making it the largest Fiber Channel storage network switch. The company is different than most for a couple of reasons: 1) broad range of products (director and fabric switches, HBAs, WAN connectivity) and 2) sells directly to end users, not OEMs...BRCD and MCDT focus solely on the FC switching market, but INRG benefits by addressing the channel extension market (SAN or WAN) by being able to sell more of a full solution. Also, its direct sales effort allows the company to be more in touch with demand and the needs of the storage market. Another benefit is that is allows INRG to provide service and consulting services to supplement its hardware sales -- this has been INRG's fastest growing segment....The stock is up sharply this morning after the company raised guidance and announced a stock buyback program as it's seeing a rebound in business from a difficult Q3 with a possible return to profitability during the quarter...Strong demand for it storage products is the main reason. The high end FC/9000 director class switch and channel extenders are selling particularly well. Demand is most likely being driven by impact from Sep 11. The valuation keeps us from getting too excited about the company. Multex consensus pegs the company at an EPS of $0.06 for 2002 and only $0.35 for 2003. We expect the stock to be more event driven over the coming months. The psychological boost of a return to profitability would spur the shares, but we see it as more of a trading stock than a long term hold. -- Robert J. Reid, Briefing.com 05 Dec 2001 11:20 ET **** Maytag (MYG) 30.77 +1.22: Last September, Maytag hired approximately 200 people at its Newton, Iowa, laundry products plant so that it could increase production to meet demand and reduce the backlog of orders from its customers. Last night, the appliance maker said it will be lowering production levels at that same plant since the backlog of dealer orders for Maytag washers and dryers has been virtually eliminated over the past several months. Accordingly, Maytag now wants to curtail production, beginning Jan. 7, so that inventories are more in line with current and anticipated demand. Unfortunately, that means Maytag will be laying off many of the same 200 people that were hired in September to help it through a very busy period of production. There is no word yet on whether Maytag was also kind enough to enroll those employees in the jelly-of-the-month club. Needless to say, layoff announcements at this time of year have a particularly cold feel to them, but sadly, it is a fact of life in corporate America where profits, more often than not, take precedence over all else. Frankly, shareholders have a right to expect such a focus, and hence, it is not unusual to see a company's stock trade higher in the wake of a job cut announcement that will lower operating costs. Maytag is receiving such praise today as investors are encouraged by its prudent management of washer and dryer inventory levels. Briefing.com is, too, as the move to keep production in line with demand should help ensure that there is less price erosion on its products in an uncertain demand environment. Maytag's claims that sales of washers and dryers are running well ahead of last year in an industry that has been down slightly, and that current order rates are still strong versus last year and industry sales, are added reasons why investors should be feeling cheerful, even though approximately 200 Maytag employees in Newton, Iowa, don't.-- Patrick J. O'Hare, Briefing.com