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.

Strategies & Market Trends : Working All Day, But Trading Behind the Bosses Back Thread -- Ignore unavailable to you. Want to Upgrade?

To: Cymeed who wrote (485)	2/7/1999 1:38:00 PM
From: Mark[ox5]	Respond to of 779

An interesting TUTS article.. mostly pros but shows a few cons (but cons won't matter in the short term with a 2.5M float) upside.com Tut Kicks Butt The Take February 01, 1999 by Phil Harvey Wall Street's latest golden child, Pleasant Hill, Calif.-based Tut Systems Inc. (TUTS) has a way with copper wires. Once again, investors ratified the broadband access market by sending Tut's shares up from $18 to $57.50 per share on the company's first day of trading last Friday. But that doesn't solve the problems involved in moving high-speed data around once it reaches the home. Tut's technology gets the data there, but then it has nowhere to go. "There are some challenging technological issues ahead for companies like Tut Systems that don't get solved with a successful IPO," says Joel Achramowicz, a senior equity analyst at San Francisco-based Preferred Capital Markets Inc. Achramowicz admits Tut's technology for enabling high-speed data access over the existing copper telephone wires in homes and businesses is impressive. However, he says the company will have to continue to put a lot of money back into research and development--Tut has today's hot technology covered, but the networking industry won't stand still. A combination of cable modems and wireless solutions isn't far behind. As it stands now, analysts agree that Tut is sitting pretty. The Home Phoneline Network Alliance (Home PNA)--which includes 3Com, Intel and Compaq, among others--has declared Tut's technology the residential standard. Less visible, but more lucrative, are Tut's business and multiple-unit dwelling high-speed data-access products. As the company hustles to extend the potential of the existing copper infrastructure, broadband cable providers are at a disadvantage. Tut's products allow users to plug devices directly into phone jacks, while cable providers will have to figure out how to distribute bandwidth around the house--and pay for those devices. Tut's recent IPO was surprising given that most networking technology companies get snapped up for acquisition by bigger fish, like ever-hungry Cisco Systems Inc. (CSCO). Tut decided to roll the dice on Wall Street, even though networking analysts say it would be a surprise if Tut had never been approached for buyout talks. Achramowicz points out that Cisco's modus operandi is to gobble up little-known private companies long before they gain Tut Systems' current valuation. Also, Tut's association with the Home PNA and its investors--AT&T Corp. (T), Microsoft Corp. (MSFT) and Intel Corp. (INTC)--has done little to keep the company a secret. Besides, Achramowicz says, Tut may have resisted suitors, knowing that it had a good story to tell investors and that it would do well in the public markets. So far, "doing well" is an understatement. Tut's stock closed on its second day of trading up 13 3/4 to 71 1/4.

To: Cymeed who wrote (485)	2/7/1999 1:43:00 PM
From: Mark[ox5]	Respond to of 779

This is why I dont like buying new IPOs the 1st week Granted TUTS had a disadvantage of a bad week on NASDAQ But now seems to be where to buy it...it is back to where it was the 1st day... and high of 86 already Seems to of stabilized in upper 50s, low 60s but its guesswork at this point because it has no history. Main danger is volume dries up as people chase this weeks IPOs and totally forget about TUTS. But I think with the "coverage initiated" tactic in the next 1-3 weeks it shouldn't be a big concern Ticker: TUTS Date Volume High/Ask Low/Bid Close -------- ---------- ---------- ---------- ---------- 01/29/99 7,582,100 63 3/8 48 57 1/2 02/01/99 3,001,200 86 1/4 58 1/4 71 1/4 02/02/99 1,933,800 83 5/8 70 1/2 76 1/8 02/03/99 1,214,100 82 1/2 62 66 02/04/99 1,103,900 68 5/8 57 1/8 58 3/8 02/05/99 803,900 61 5/8 55 1/4 60