Liz Fyi and thanks for your thoughts on Beas and the dip was a buy.
Liz below this a couple of weeks old thought it's worth the read again especially the part about new emerging applications.
Telecom Equipment/Broadband Access Infrastructure - Deutsche Banc Alex. Brown's
George Notter Initiates Coverage
NEW YORK, Jul 13, 2000 /PRNewswire via COMTEX/ -- Deutsche Banc Alex. Brown's
George Notter yesterday initiated coverage of nine telecommunications equipment
and broadband access infrastructure suppliers. Shares of ADC Telecommunications
Inc. (Nasdaq: ADCT chart, msgs -- chart, msgs $78.31 chart, msgs), Advanced
Fibre Communications Inc. (Nasdaq: AFCI chart, msgs -- chart, msgs $52.00 chart,
msgs) and Efficient Networks Inc. (Nasdaq: EFNT chart, msgs -- chart, msgs
$83.00 chart, msgs) were started with a STRONG BUY investment rating. Shares of
Adtran Inc. (Nasdaq: ADTN chart, msgs -- chart, msgs $69.81 chart, msgs), Carrier
Access Corporation (Nasdaq: CACS chart, msgs -- chart, msgs $61.31 chart,
msgs), Copper Mountain Networks Inc. (Nasdaq: CMTN chart, msgs -- chart, msgs
$93.56 chart, msgs), Redback Networks Inc. (Nasdaq: RBAK chart, msgs -- chart,
msgs $156.50 chart, msgs), Tellabs Inc. (Nasdaq: TLAB chart, msgs -- chart, msgs
$73.31 chart, msgs) and Turnstone Systems Inc. (Nasdaq: TSTN chart, msgs --
chart, msgs $201.00 chart, msgs) were initiated with BUY investment ratings.
With current market penetration at 2-3% of the servable market, Notter believes
that the broadband access infrastructure industry is in the early stages of a very
long-term deployment that ultimately can reach penetration rates in excess of
50%.
In keeping with the adage that applications drive technology adoption, Notter sees
several emerging applications, in addition to high-speed Internet access and remote
LAN access, which he believes will serve as catalysts for broadband infrastructure
growth in the future -- outsourced application services, content delivery services
and voice services.
"It seems ironic, but voice may be the killer broadband application," said Notter.
"With the market for local and long distance services at $700 billion a year versus
data services at $40 billion, voice represents a huge opportunity for the broadband
infrastructure suppliers. What's more, there is no sales cycle for voice services and
consumer switching costs are fairly low, which means very few barriers to entry
relative to the incumbent voice services providers."
Notter recommends that investors focus on equipment suppliers that (1) enable
carriers to offer new services; (2) provide a migration path to new technologies;
and (3) address a large market opportunity.
Concurrent with his coverage initiation, Notter is releasing a major theme report,
"Broadband Access Infrastructure: Investment Opportunities Abound." Deutsche
Banc Alex. Brown clients should contact their investment representative for copies.
Deutsche Banc Alex. Brown identifies the U.S. investment banking activities of DB
Alex. Brown LLC and Deutsche Bank Securities Inc., which are indirect subsidiaries
of Deutsche Bank AG. With over $869 billion in assets as of September 30, 1999
and approximately 90,000 employees, Deutsche Bank offers its clients unparalleled
financial services throughout the world. It ranks among the leaders in asset
management, capital markets, corporate finance, custody, cash management and
private banking. Deutsche Bank is divided into five major business units: Global
Corporates and Institutions, Global Technology and Services, Asset Management,
Corporates and Real Estates and Private and Retail Banking.
Deutsche Bank Securities Inc. maintains a net primary market in the common stock
of ADC Telecommunications Inc., ADTRAN Inc., Advanced Fibre Communications
Inc., Carrier Access Corporation, Copper Mountain Networks Inc., Efficient
Networks, Inc., Redback Networks Inc., Tellabs Inc. and Turnstone Systems Inc..
ADC Telecommunications Inc., ADTRAN Inc., Carrier Access Corporation, Copper
Mountain Networks, Inc., Efficient Networks Inc., Redback Networks Inc., Tellabs
Inc. and Turnstone Systems Inc. shares are optionable. Efficient Networks Inc. and
Redback Networks Inc. has a convertible issue outstanding.
Information herein is believed to be reliable and has been obtained from sources
believed to be reliable, but its accuracy and completeness cannot be guaranteed.
Opinions, estimates, and projections constitute our judgment and are subject to
change without notice. This publication is provided to you for information purposes
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worldwide, may hold a position or act as market maker in the financial instruments
of any issuer discussed herein or act as advisor or lender to such issuer.
Transaction should be executed through a Deutsche Bank entity in the client's
home jurisdiction unless otherwise permitted by law. Deutsche Bank Securities Inc.,
and DB Alex. Brown LLC, are members of NYSE and NASD. Copyright 2000 Deutsche
Bank Securities Inc., and DB Alex. Brown LLC. In the U.S. this report may be
distributed either by Deutsche Bank Securities Inc., or DB Alex. Brown LLC.
Interested parties are advised to contact the U.S. entity they currently deal with,
or the U.S. entity that has distributed this report to them. Source: Deutsche Banc
Alex. Brown |
