Stock Market Update - Thu Nov 15 09:38:40 EST 2007

Brean Murray initiates Sell . Target $6. Brean Murray initiates PKTR with a Sell and a $6 tgt saying recent quarterly results have demonstrated stability in the business-yet the lack of guidance, coupled with mgmt's decision to increase operating expenses at the expense of profitability-give the firm pause and affirms their belief that competition is intensifying. The firm views PKTR as facing several headwinds, which could negatively impact revenue and earnings over the next 12 months: increasing opex, which will limit meaningful earnings growth; a more protracted ramp in iShaper; declining demand for its standalone PacketShaper product; and increased competition from more networking OEMs (Cisco and Juniper), which will ultimately incorporate WAN accelerating into their switching products.