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Technology Stocks : FVC.Com - FVCX >>> Streaming Video on Net , Compare with -- Ignore unavailable to you. Want to Upgrade?

To: TheSlowLane who wrote (13)	4/8/1999 1:07:00 AM
From: Jim Paxton	Respond to of 31

Here are my two pennies: FVCX got blindsided by Nortel when they rewrote the agreement made between FVCX and Bay Networks. No more inventories, drop ship only. It also appears that Nortel will decrease orders to FVCX. But this isn't the end and can actually make FVCX a better, stronger company in the long run. The one thing that does stick in my craw is the practice of counting revenue based on inventories held in distribution warehouses. If the inventories can be returned, then a real sale has not occurred. Unfortunately this is not an uncommon practice. None-the-less, FVCX appears to be a risky, but decent play on future internet development. I bought yesterday at $14 1/2, so I am down 50+%, but holding. I would certainly not advise anyone to place anything but a small percentage into a company such as FVCX. But there are potential rewards. The market is a risk, that's why we enjoy good returns. Today we got a lesson in risk. I have taken a few hits like this before. In the aftermath, I try to ask myself. If I sell, can I make a better return with the proceeds than I could logically expect by holding? At approximately $7, a 25% return would equal a share of $8.75. A 50% return would equal $10.50. So what are the chances that I can get between $8.75 and $10.50 for my shares of FVCX over the next 12 months? My answer an excellent chance and right now I don't know where I could better use the capital, so it will remain vested in FVCX. I can't worry about the money that has disappeared (it'll drive ya nuts). I can only be concerned with the capital I have today and where best to put it to work. Why not buy more shares? Average down? I am not a fan of averaging down per se, and right now I am not real certain of all the facts. There are a lot of fish in the ocean. Good luck