Market psychology is an amazing thing.Two weeks ago,everything about EXDS was doom and gloom.Now,all of a sudden,instead of everyone *knowing* they would go bankrupt,they're starting to talk about *if* they survive...lol
When they announce access to more money,this stock will be in the high single digits,maybe even double digits.Observe how the *tone* of the articles is changing......
Exodus Shares Up Sharply on Renewed Optimism
PALO ALTO, Calif. (Reuters) - Shares of Web hosting company Exodus Communications Inc.(Nasdaq:EXDS - news) posted strong gains for the third straight trading session on Tuesday, as investors focused on the potential upside if Exodus, which lost $583.4 million in the latest quarter, can survive, analysts said.
Several analysts said it remained a tossup whether Exodus will survive. But they said investors have been encouraged by recent comments by Exodus President and Chief Executive Ellen Hancock focusing on the company's large customer base and its $1.35 billion of revenue expected for this year.
Exodus shares were up 21 cents, or more than 11 percent, to $1.98, and were the second most active issue on NASDAQ Tuesday afternoon.
In addition, Alex Arnold of Adams Harkness & Hill said rumors had circulated recently that the company had secured additional financing. Exodus, which is expected to end the year with just $200 million on hand and has stated it is looking to raise more money, was not immediately available to comment on the funding reports.
However, Arnold said that since most investors bought Exodus stock at much higher levels, they have little incentive to sell the stock at current levels.
``On the other hand,'' he said, ``it does have a lot of upside potential. If this company does survive, its stock will have definitely been oversold at current levels.'' |
