Zeev, thought you went short for the first time 5 trading days ago? Instead you bought GOOG and TZOO? Don't tellme, you've got calls on NFLX and JNPR???
(FBR on JNPR) Downgrading to Market Perform from Outperform JNPR`s competitor, Avici, reduced 3Q04 revenue guidance to $3.5M from $13M. We believe T may have caused the majority of the shortfall and cut capex in 2H04 as it reevaluates its core IP upgrade. The pullback in T`s core IP program may pressure revenues at JNPR, which is the other major core router provider at T. Two months ago, T announced plans to withdraw from the UNE-P consumer business in seven states and is de-installing equipment in many central offices. AVCI CEO Steve Kaufman said T is not likely to resume its IP upgrade next year. 4Q04 estimate changes. We reduced our 4Q04 estimates to revenues of $390M from $415M and EPS of $0.11 from $0.12, bringing FY04 estimates to revenues of $1.28B from $1.32B, and EPS to $0.38 from $0.40. In 2005, we reduced our revenue estimate to $1.69B from $1.83B and EPS to $0.55 from $0.60.
Stewart & Stewart
Sherry Grisewood, CFA 908-832-7783
SherryCFA@aol.com
Market: Technical indicators for stocks remain bearish but following this today`s slightly better GDP than forecast, may mount a mild technical rally. Late quarter portfolio activity may also provide temporary market support.
INDU NEAR RESISTANCE 10065 / 10104
NEAR SUPPORT 10034 / 10017 / 9991
DEC S&P NEAR RESISTANCE 1109.10 / 1112.80
NEAR SUPPORT 1106.25 / 1105.50
DEC NOTES NEAR RESISTANCE 113-17
NEAR SUPPORT 113-06
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