Here are my stock picking strategies that have worked well for me or I have learned.
1.) The stock strategy that has never let me down is "buy low" at a value price, which of course can be subjective, but I know it when I see it. This obviously limits the down side if you can do it.
2.) Never listen to your wife or let her have an emotional effect on you. Many of my loses and some huge lost opportunities are attributable to this. I'd be independently wealthy if I had followed this in the past, but it is hard to do sometimes. Investing takes cold logic most of the time and when you get an emotional spin on you it makes you make mistakes.
3) I go for high tech companies because I believe that is where the growth is. If I can buy growth at value prices, then I'm in hog heaven. However, success is often fleeting because of technology changes and cut throat competition.
My challenge is to learn to time my sells better. I have either held when I should have sold or sold when I should have held. I would be interested to hear from you all when you sell on the stocks we mutually own (SNDK, IDTC). It might help me out.
My stock to throw into the hopper is IFCI. It should benefit from the bandwidth expansion buildout.
IFCI provides installation, construction, consulting, design, engineering and systems integration services to owners of
broadband, fiber-optic newtworks. IFCI also sells telecommunications equipment. For the nine months ended 9/98, revenues
increased 72% to $71.8 million. Net income applicable to Common increased 59% to $8.2 million. Revenues benefitted from
the acquisitions. Net income was partially offset by the inclusion of a $890 million non-recurring acquisition cost.
It is selling in the high six's right now. I think it is at a good value point here versus the 8-9 when I started watching it. I bought in at the mid- sixes. The lowest it might drop barring unexpected news is 6 IMO. On the other side I think its an easy 9 before you have to start thinking about selling. It is selling in a very tight range right now and will pop nicely when it moves. I hope that will be an upward pop instead of a downward one on positive earnings.
The earning report sometime in March will say a lot. They are claiming record revenue over $100 m, which will results in beating analyst estimates.
Aus, I see you are on the AFCI thread. Any thoughts on which is a better stock?
SNDK - 36 7/8
IDTC - 18 1/2
IFCI - 6 7/8
Tuesday January 19, 7:06 am Eastern Time
Company Press Release
International Fibercom, Inc. Announces Launch of
Broadband Fiber Optic Installation Services in
Southeast U.S.
PHOENIX--(BUSINESS WIRE)--Jan. 19, 1999--
Compass Communications Unit Awarded Initial Fiber Optic Network
Design and Build Contracts by Adelphia Communications for $5
Million; IFCI Also Announces It Expects to Record 1998 Revenues
in Excess of $100 Million
International FiberCom, Inc. (Nasdaq:IFCI - news; PHLX:IFC) and its Chairman and CEO, Joseph P. Kealy today
announced it has begun providing complete broadband fiber optic installation services in the southeastern U.S.
The services are being marketed through IFCI's Compass Communications subsidiary. The Compass unit has already been
awarded two separate modified turnkey design and build contracts by Adelphia Communications for Adelphia's expansion and
upgrading of its existing cable television system in Palm Beach County, Fla. with fiber-optic cable. The new network will
accommodate high speed, broadband roll-out, data and video transmission.
Work is scheduled to commence on Feb. 1, 1999 and these contracts are expected to initially generate approximately $5
million in revenue by Dec. 31, 1999. Adelphia Communications, based in Coudersport, Pa., owns, operates, and manages
cable TV systems and other related telecommunications businesses and is listed on the NASDAQ Stock Market.
The new unit will be headquartered at the Compass offices in Lawrenceville, Ga. and has also opened a second office in West
Palm Beach, Fla., where the Company will focus on a number of cable television fiber optic upgrade projects. IFCI is one of
the leading providers of fiber optic broadband network installation and maintenance services throughout both the southwestern
U.S., through its Kleven Communications unit, and California, through its Riley Communications unit.
Compass Communications has created this new division to complement its existing telecommunications and broadband
network engineering operations. IFCI completed the acquisition of Compass Communications, Inc. in November, 1997.
Compass is a registered engineering company providing comprehensive mapping, planning, design, consulting, and construction
services to the telecommunications industry.
Compass has played an integral role in helping six of the top ten U.S. cable operators upgrade their plant from one-way video
delivery to bi-directional broadband networks capable of delivering interactive services such as high speed data, and IP
Telephony.
Compass is now one of the largest broadband network engineering design businesses in the United States and employs more
than 250 field engineers and technicians. Its customers include Time Warner, Motorola, Bellcore, and Media One, TCI and
CableVision.
Commenting on the announcement, Kealy stated, ''The vertical integration of Compass' front end design and engineering
capabilities has become a key component to our overall plan of becoming a fully integrated 'one stop shopping solution' of
telecommunications and cable broadband network infrastructure services for the telecom and cable industries. By adding
outside fiber optic plant services to Compass' existing engineering design group, the Company can offer complete design and
build packages to its client base throughout the southeastern U.S.''
Kealy continued, ''1997 and 1998 will be viewed as years we acquired the management depth, technical expertise and critical
mass to become a 'one-stop shopping' solution for the telecommunications marketplace. We can offer engineering, consulting
and broadband network systems design, installation of structured cable and fiber-optic networks, and complete LAN/WAN
systems integration services. The feedback we have received from the leading RBOC's, long distance companies and cable
providers regarding our new fully integrated abilities to provide a complete outsource solution has been quite favorable. We
anticipate recording revenues in calendar 1998 in excess of $100 million and we enter 1999 extremely well positioned to take
advantage of the enormous nationwide demand for our complete fiber-optic broadband network services.''
International FiberCom is a fully integrated ''one stop shopping'' outsource provider for the telecom and CATV industries.
Through its seven subsidiaries, IFCI provides a range of high level engineering, broadband network systems design, installation
of structured cable and fiber-optic networks and complete telecommunications systems integration services with LAN's and
WAN's expertise.
Its Kleven Communications and Riley Communications subsidiaries specialize in the design, installation and maintenance of
fiber-optic and other cable services for the telecommunications and cable industries. Its Tennessee based subsidiary, Concepts
In Communications, provides systems integration services including design, engineering, installation and maintenance of
structured cable systems, network hardware and software, workstation peripherals and intercommunications systems.
Its telecommunications engineering subsidiary, Compass Communications, specializes in designing and building broadband
video, voice and data networks systems. Its telecom equipment units, Southern Communications Products, United Tech and
Diversitec are leaders in a fast growing niche business within the telecommunications equipment sector.
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