Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: PaperChase who wrote (27488)	12/5/1998 12:14:00 PM
From: Bobby G.	Read Replies (2) \| Respond to of 36349

A couple of thoughts on this topic: ADTRAN Inc., a provider of high-speed digital transmission products, said Friday it expects fourth quarter revenue and earnings to fall short of Wall Street's expectations, citing a reduction in purchases by most major telephone companies. 1. A reduction in purchases of what? Adtran's product or all products. If this were the case, why did Lucent go up almost $8 on Friday. 2. ADTN basically is selling one type of product to the RBOCs. Have they reduced spending on this product only, perhaps? Maybe the problem for ADTN is that they're giving the stuff away? 3. PAIR said in their Q3 call that they are focusing on CLECs and ILECs because they are moving faster than the RBOCs. As bad as PAIR as been this year, I still believe they have a good long term strategy. 4. PAIR is growing internationally. I don't know what ADTN has done outside the US. 5. The RBOCs are going to have to do something to offset the challenge by the cable companies, CLECs, ILECs, etc. I'm no RBOC expert, but I can't imagine they'll sit around and lose the opportunity they have to provide xDSL services to their massive customer bases. That doesn't make any sense. Comments, rebuttals, other opinions suggested. My basic point is that I don't think that ADTN's announcement should have a negative impact on PAIR's stock price. It probably will as an initial reaction, but longer term, it's meaningless (IMO). Bobby G