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Technology Stocks : Stratex Networks, Inc. (STXN) -- Ignore unavailable to you. Want to Upgrade?

To: Rob Preuss who wrote (1601)	10/21/2004 11:52:20 AM
From: The Ox	Read Replies (2) \| Respond to of 1762

The main problem is still the red bottom line. This market is NOT looking forward to the future and that's where STXN's improved fundamentals lie. Companies like STXN, where the bottom lines are negative, are getting tossed aside. Trailing eps is -0.49 and they are not expected to show positive eps until FY06 according to S+P's research. While the quarterly revenue picture has improved over the past 5 qtrs, they've shown full year red eps numbers for 4 years and it will be 5 after this year (unless things change dramatically from the current expectations). In the 4th qtr of FY2003, they had the same revenue run rate as the first qtr FY05 and nearly the same eps loss. The street is getting tougher on companies that aren't showing bottom line improvements and on the surface, the numbers for STXN do NOT look like they are improving. The last 30 days has clobbered the stock, no doubt. Whether the baby is getting tossed out with the bathwater is hard to say. Yes, I believe their future holds plenty of potential but unless you purchased your stock at the very bottom in 2002, you're looking at a loss. That means most holders of the stock are looking at their losses and probably bailing out. I've just started nibbling on the stock since it's fallen below $2, so I'm putting some money where I see growth potential but most investors are not looking at this sector or at companies like STXN, who's #s just don't look very good at this point in time. I think the risk/reward has tilted toward the reward side but one must have the patience to see this through. It seems to me a lot people just don't have the patience for stocks like STXN these days. That's how I see it. mh