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Technology Stocks : YURI ( YURI SYSTEM ) -- Ignore unavailable to you. Want to Upgrade?

To: Hugh Johnson who wrote (806)	3/12/1998 7:51:00 PM
From: The Phoenix	Respond to of 1181

Hugh, Selling through OEM's almost assures that margins will be lower than if you sold direct. I didn't know this needed an explanation. The only way it would be different is if YURI OEM'd to some bone-head company and cut a deal to sell at 10% off list AND that company got lucky enough to land a huge deal. Chances of that happening are slim and none - and you know were slim is. ;) As for my basic assumptions about price erosion. Hey, this is a given. YURI can hope for economies of scale all they want, but there's no way these will keep up with price erosion. YURI will be better suited to either do cost reduction or finish development of their second generation platform. They have to keep in mind the mantra - double the performance and half the price (and half the cost). Given new chipsets from BroadCom, Maker, and other packet/ATM vendors YURI will face more and more competition. I will restate that they have a good franchise going, but this is not the time to get complacent. As for Kwok. I don't think that because he's on the board of SplitRock that he has to report back to YURI what number of LDR's SplitRock are buying. In fact, I think the information he has about SplitRock's business is proprietary and in fact by definition could not be shared with YURI. So, quite the opposite of your argument. Are there any lawyers in audience? As for Cisco having a higher Price to Sales than YURI... If so, not by much.. I think they're about the same, both about 10. YURI's P/E is about 50% higher however. I'm not shorting either security right now. Cisco's franchise is a good deal stronger than YURI's so downside risk is limited and beta is low. As for YURI, I haven't decided whether I'll short later this year or not - that will depend on price and market fundamentals. YURI's position in the market is good deal more tenuous than Cisco's - the two are uncomparable. Gary

To: Hugh Johnson who wrote (806)	3/13/1998 10:13:00 AM
From: The Phoenix	Read Replies (2) \| Respond to of 1181

BTW, CSCO has a higher price/sales ratio than YURI. Do you think CSCO is a short now? CSCO: COWEN & CO. reconfirms the recommendation as Strong Buy on 03/11/98 CSCO: UTENDAHL CAPITL reconfirms the recommendation as Strong Buy on 03/11/98 HUGH... and everyone else. You see, if YURI could get these kind of reccommendations it would indeed take off. I think I mentioned this back in Feb...perhaps Jan. But YURI needs some news to get some movement. It's not going anywhere on its own. Either we wait for earnings or their press department needs to make something happen. They should announce a win, or an alliance, or a strategy, or something! Gary