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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: techanalyst1 who wrote (11612)	5/17/2002 8:28:52 PM
From: Bill Harmond	Read Replies (1) \| Respond to of 57684

McData can't afford to. Brocade manufactures 100% in China and artificially keeps margins at 60% by lowering prices to its OEM's. Brocade's prices are the lower of the two companies. In fact Brocade is selling the 2 gig stuff at 1 gig prices and maintaining the margins. Brocade is eating McData's lunch apparently. I don't get the stock price either. Their conference call was outstanding. Worth a listen. I've only read BofA's analyst report but it was glowing, raising estimates, etc. So it comes down to competing technologies or unwnding derivatives this expiration week. The competing technologies argument would hurt Emulex, too, though, because Cisco uses QLogic's technology, and Emulex worked still higher today. So go figure. I can't.