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Technology Stocks : APA OPTICS(APAT)-fiberoptic upstar -- Ignore unavailable to you. Want to Upgrade?

To: jack bittner who wrote (21)2/22/2000 12:45:00 PM
From: Andy Yamaguchi  Respond to of 34
Jack, to answer your question why AVNX has so many backup from big name like mcom, msft..., you know that MCOM and MSFT got their shares just before the IPO at the price around 10. Actually, fiberoptics space is very hot, any fiberoptic company can get big name backup them. I have a friend in Newfocus-a start up fiberoptic company in Silicon Valley. Many VC are coming to their door to invest, but they are saying no-need now. I am not saying AVNX is not good, you know I would also invest my own money if I could get 10 a share for AVNX.

AVNX is still a good company. The issue is the valuation. Their valuation is nearing ETEK's. They only have one product. The method they are using for DWDM is called interleaver method, they do not own the technology. ETEK/JDSU/GLW also are going to have this technology in months. There is no advantage for AVNX. I would definitely sell AVNX and buy ETEK now. ETEK is a much much stronger company comparing to AVNX.

AVNX also has share ownership issue. Insiders own more than 90% of the shares. When the lookup period expires,I expect massive insider sells.

Higher density DWDM is very difficult to do. But as the interleaver and fiber grading technologies advance, we shall see higher density ahead. In addition, I expect system integrators like LU and NT would use signal processing methods to further increase the channel density for DWDM system. Until today, there is almost no signal processing techniques applied for increasing DWDM system density.

Good luck