E-Mailbag Monday: CoSine, Informix, Fixed Wireless

What’s hot for the IPO market this week?

Reply: Look for a hot performance from
CoSine Communications.
The company has built an advanced platform for Internet Service Providers to offer
value added services. The platform is an open architecture, so customers can be
flexible with their offerings.

The technology seems particularly timely, as Internet Service Providers are
seeking new revenues streams. Also, CoSine has great backers, such as Kleiner Perkins.

The lead underwriter is Goldman Sachs and the price range is $20-$22 (the
company intends to issue 10 million shares). The proposed ticker symbol is

Informix: Bottom Fishing?

Informix is way off it’s lows. Is it time to consider buying it?

Reply: I think the company could very easily stay at these levels
for some time. The 52-week range is $3-11/16-$21-3/4. Currently, the stock
trades at $4-9/32.

Informix has history
of problems. And, yet again, the company announced a new restructuring.
The company will be split into two operating companies: database management
and e-business. Unfortunately, the company also announced that it will have
a third-quarter loss. Wall Street had expected a profit. What’s more, the
company’s chairman resigned last week.

Based on the company’s past performance, I think Wall Street will be very
skeptical of Informix. So, the company will need to show at least two
quarters of progress before the stock shows strength.

Fixed Wireless: What Does It Mean?

I’ve been hearing lots about fixed wireless. What is it?

Reply: For consumers, the most common ways to get broadband Internet
access are: DSL and cable modems. But what if you live in a rural area and
you do not have these options? Well, one possibility is satellite access,
such as through DirecPC. But this can be expensive.

Or, another possibility is fixed wireless. This uses transmitters to beam
data over microwave frequencies. The data can be transmitted over
distances of 35 miles and the speeds can reach 1.5 Mbps. Although, the
pricing will likely be high – as the service is fairly new. But like any
other Internet service, the pricing will inevitably fall.

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