I asked you about this a year ago, and with the acquisition of Acapella now a factor, I'd like to ask again if it might make sense for INTC to acquire SMTC, or another analog company.
There are a couple of things that make me consider this a good move for INTC. First, analog is NOT what INTC does well, yet it is becoming a more and more critical part of computing, communications, and even digital processing. Also, INTC is being hampered by bandwidth clog on the net; purchasing SMTC could give them control of some technology they could then accellerate development in.
Here's an interesting link, mention of SMTC towards bottom:
fnews.yahoo.com
One other company that REALLY has my attention is Uniphase (UNPH). I am considering where they will fit in, in the race to build a fibre based communications network. Tim was asking about Cienna, and the other communications equipment makers, and about his impression that this industry was hot. I agree with both of you, this industry has plenty of growth potential, especially in fibre based telecommunications equipment.
In part, I feel CIEN is a victim of it's own actions. That's a hard luck story, and I think they may be one that does not rebound any time soon.
Uniphase has quitely obtained companies that allow it to offer complete fibre solutions for telecommunications transmission. They are involved in the local loop, long-haul, and cable segments of the market, and they also manufacture the lasers, grates, and other components necessary to send signals over fibre using broadband technology.
I did a little research on broadband transmission, and feel it is THE future of sending information over fibre. In essence, the idea uses the spectrum of colors to send multiple signals down the same piece of fibre. To filter out each independent signal, special grates are used to pull out the specific signal that is being carried on any given portion of the color spectrum. Pretty cool stuff, and it promises to provide enough bandwidth to make everyone happy, including me :o)
Anyways, one reason I think companies like CIEN are falling upon hard times is that people are re-evaluating how they are going to build a telecommunications infrastructure. CIEN and the "old school" companies are reliant upon highly technical, and tempermental switching equipment to make their systems operate. The switching is really an indication that there is bandwidth clogging taking place, since their role is to allow complex sharing of existing network capacity.
With broadband, there may no longer be a need for switching equipment, since the bandwidth may be available on-demand, and in almost infinite capacity (work with me on that generalization :o). So, companies like UNPH are threatening to replace or chew into the business of CIEN and the likes. Until there is proof that broadband cannot handle the bandwidth issue without switching, I think there will be a reluctance to buy into CIEN and similar technology.
Broadband is going to be HUGE, find the winner in that market, and you've just scored yourself a possible 10-bagger. Like Todd, I REALLY believe in the small-cap companies, the ones that are developing the technology that will drive this revolution. I am looking at broadband as one of the primary benefactors of the communications revolution over the next 5 years. This is a good industry to spend some time doing research, and trying to cherry pick an absolute winner.
Hey did you hear SMTC may be buying INTC? lol :o)
Have a great weekend everyone!
Regards, JB |
