Looking for value in communications
'Disparity' abounds in overlooked corner of tech sector
>>> Other analysts endorse a different strategy -- investing in small startups that offer innovative, unique technologies or tracking private companies in hopes they will go public. Richard Woo, networking analyst for Thomson Kernaghan & Co., maintains that the larger equipment providers are still the best investment, but believes startups can provide a back door into the equipment industry.
"Smaller companies are facing challenging times," Woo said. "The product market is more mature and unless you have a unique business model, superior technology and a large customer base, like Cisco or Lucent, you're probably just going to move sideways."
For those investors unwilling to pay Cisco or Lucent prices, Woo recommends focusing on companies with a smaller revenue base, a unique product line that doesn't compete with older-generation network equipment, an immature industry and few competitors.
Among the companies that have been successful with this model, Woo cited Broadcom Corp. (BRCM), <<<
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