glw, fnsr, csco are all trading at premium to their growth rate while jdsu trading at the growth rate.
A few more comparisons:
Price/Sales **** Est. REV growth 2001
NT 3.26 **** 34.4%
CSCO 14.51 **** 56.8%
PMCS 22.26 **** 77.4%
JNPR 97.06 **** 101%
JDSU 16.31 **** 119.2%
SDLI 31.37 **** 93.5%
Now, from Barron's:
interactive.wsj.com
DECEMBER 25, 2000
Down, Not Out
Strategist on Internet investments picks stocks for a rebound
An Interview With David Readerman ~ As director of Internet strategy for Thomas Weisel Partners and with nearly 20 years of experience tracking technology companies, Readerman's weekly insights into the trends and dynamics of the New Economy have proven indispensable to investors seeking to profit from the next new thing. His DIRT report -- that is, Dreaderman's Internet Research Trends (available at www.tweisel.com), is more than on time; it has also been on target in its appraisal of a sector known more for the ballyhoo surrounding it than for any balanced coverage. Readerman's research is exhaustive, all-encompassing and richly informative. Despite all that, he's the first to admit there have been few places to hide as we go through the "bust" phase of the Internet era. To learn why he's confident there'll be a return to boom times, please read on.
. . .
Q: What names are you focused on?
A: We're focusing in on the bandwidth side through the equipment providers. Those would be Extreme Networks, Juniper, Redback Networks and Cisco, which are all strong buys. Thinking ahead for the next generation of optical-equipment providers, we like JDS Uniphase. For full disclosure, we advised JDS on the pending SDL transaction. JDS is responsible for manufacturing the communications components that make optical networks possible. We are focusing on optical transport systems through Sycamore Networks. We have seen the implosion of the telecom providers and have focused on the equipment manufacturers to those companies. . . .
Q: So, your favorite picks are -- what?
A: JDS Uniphase and Sycamore are strong buys. Cisco, Extreme Networks, Juniper and Red Back are strong buys. EMC is a buy, not a strong buy. On the software side, webMethods, Blue Martini Software and Informatica are strong buys.
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