Sandvine stock crashes -- Analyst cites Telecom Economy, Network Neutrality concerns
SANDVINE STOCK HITS NEW LOW SIMON AVERY From Friday's Globe and Mail March 6, 2008 at 10:51 PM EST http://www.theglobeandmail.com/servlet/story/RTGAM.20080306.r-sandvine07/BNStory/Technology/home Few young Canadian firms have faced such great expectations as Sandvine Corp. [ ... ] Yesterday, the long adulation of Sandvine ended. Its stock fell 42 per cent to a new low of $1.55 on the Toronto Stock Exchange after the company warned that revenue this year will be about 20 per cent less than the previously reduced estimates it gave in December. "I am bitterly disappointed," said Peter Misek, a Canaccord Adams analyst. He didn't blamed management, but his own "blindness and love" for the company's technology. Sandvine makes software and hardware that tells cable operators and phone carriers what type of traffic is running over their networks at any moment, allowing them to adjust their capacity and their security. As music, video and gaming drives up demand for broadband, most experts assumed service providers had no option but to invest to make networks more efficient. Two events, however, have suddenly changed that common wisdom, Mr. Misek said. The credit crunch is making it difficult for the telecom industry to refinance its debt [ ... ] The second event is the political hot potato in Washington, D.C., of Internet neutrality. [ ... ] Mr. Misek and other analysts say the spectre of new Internet neutrality rules is causing cable companies to hold off on purchases from Sandvine. [ ... ] [ Article edits by NNSquad Moderator ] -- Robb Topolski ([EMAIL PROTECTED]) Hillsboro, Oregon USA http://www.funchords.com/
