. . . .BROADBAND . . . Meet the players. . .
HLIT [Harmonic, Inc ]
We have talked about this one more than others of late. . . .Thursday's buy worked out beautifully.
Harmonic, Inc. designs, manufactures and markets digital and fiber optic systems for delivering video, audio and data services over cable, satellite and wireless networks. For the 3 months ended 4/02/99, net sales increased 87% to $30.3M. Net income totaled $1.3M vs. a loss of $18.4M. Revenues reflect the introduction of new TRANsend, METROLink DWDM and PWRBlazer products. Earnings reflect the absence of a $14M in-process technology charge.
This issue trades like a very low floater. . . up and down ticks with nearly every trade. . . we bought it near the low on Thursday. . . it moved too quickly for many to grab 80, so we'll call it 83. It closed Friday at 89.25. The chart has been all about breakout. clearstation.com [not for the faint of heart] I expect further breakouts from this one. But not without heavy volatility. . . shorts like it too.
PROX [Proxim Inc.]
Proxim designs, manufactures and markets wireless local area networking ('LAN') products based on radio frequency technology that enable mobile computer users to access host-based and local area networks. For the 3 months ended 3/31/99, total revenues increased
44% to $14.8M. Net income decreased 15% to $736K. Revenues reflect increased shipments of RangeLAN2 and 2.4 GHz products. Earnings were offset by higher R&D costs due an increase in personnel.
Stock has been consolidating as it waits on further deals to push it higher. That is good. . . worth watching, as I think it is in the right biz to get those deals. Recent equity investments include Intel and Motorola.
clearstation.com
ANTC [Antec, Corp.]
ANTC is a communications technology co. specializing in the design, engineering, manufacturing, materials management & distribution of products for hybrid fiber/coax (HFC) broadband networks. For the 3 months ended 03/31/99 sales rose 18% to $145.3M. Net income
totaled $38.6M vs. a loss of $4.6M. Revenues reflect increased sales to AT&T the Co.'s largest customer. Income reflects a $60M gain on the sale of ANTEC's 6.25% interest in Arris Interactive.
Another one that has run pretty hard of late:
clearstation.com;
DMIC [Digital Microwave]
DMIC designs and manufactures digital microwave solutions for worldwide telephone network interconnection and access. DMIC's microwave systems carry voice, data, and digitized video signals. For the FY ended 3/31/99, net sales fell 31% to $236.5M. Net loss
totaled $96.7M vs. an income of $18.8M. Results reflect slowdown in demand for products in Asia, competitive pricing pressure in Europe and $29.9M in merger and restructuring charges
This one had a big gain on Friday and I give it two weeks before it trys a fourth time to break through 15:
clearstation.com;
ADAP [Adaptive Broadband Corp]
This stock is on a tear of late. . . I keep adding positions. . .and each time I do, I wonder why I didn't get more. I think it will join HLIT as a high flier sometime within 9 months. Remember our original positions were taken the beginning of the year around 10 dollars a share. .. .It was called California Microwave then [CMIC] . . so many here have already seen this stock TRIPLE.
clearstation.com
Adaptive Broadband Corp. designs, manufactures and markets systems, products and services used worldwide in satellite and wireless communications for the transmission of data, including Internet protocol data, video and voice. For the 9 months ended 3/31/99, net sales fell 10% to $116.5M. Net loss from continuing ops. totaled $23M vs. an income of $3.5M. Results reflect lower international satellite revenues and $11.8M in purchased R&D charges.
Nextel, Inc [NXTL]
NXTL provides digital and analog wireless communications services utilizing single transmission technology to customers in 50 metropolitan areas. For the 3 months ended 3/31/99, revenues totaled $663.8M, up from $327.1M. Net loss applicable to Common rose
17% to $485.5M. Revenues reflect increased domestic digital subscriber units in service. Higher loss reflects increased domestic dealer commissions and residuals by indirect distributors.
This one slipped away on news: clearstation.com It looks a bit toppy here. . .I'm still waiting for a place to jump in: clearstation.com
Covad Communications Grp [COVD]
Covad is a packet-based Competitive Local Exchange Carrier that provides high-speed digital communications services using Digital Subscriber Line technology to Internet Service Provider and enterprise customers. For the three months ended 3/99, revenues totaled $5.6M,
up from $186K. Net loss applicable to Common totaled $30M, up from $2.8M. Results reflect the expanding of the Company's network offset by increased headcount and debt levels.
This company is rolling out DSL lines in cities across America faster than than the Star Wars toys ended up in sale bins. The large float has kept them from turning around as quickly as some of the others in the sector, so it is seen as a laggard here: clearstation.com
Advanced Radio Telecom [ARTT]
Advanced Radio Telecom Corp. provides wireless broadband telecommunications services using microwave transmissions in the 38GHz band of the radio spectrum throughout the U.S. For the three months ended 3/31/99, revenues fell 4% to $226K. Net loss totalled $23.5M, up
from $9.1M. Revenues suffered from lower service revenues. Higher loss reflects a $6.4M equipment impairment charge, and increased depreciation expenses.
I think ARTT is good for 4 points near term from 10 bucks. This issue gets news on a regular basis. . . usually containing another city in their roll-out of wireless broadband to business customers. Remember, we are steering clear of those companies that are not delivering on their broadband promises.
clearstation.com;
I don't believe we will be staying at these prices much longer.
ACTV, Inc [IATV]
This is strictly a sleeper. I include this one because it has the A.T. and T. kiss of approval. Read this news of what they are developing with T's Liberty Digital [TUNE}: clearstation.com They have also recently partnered with set-top box maker GIC.
ACTV, Inc. uses proprietary technologies to create state-of-the-art programming for the rapidly emerging digital cable television and internet platforms. For the 3 mos. ended 3/99, revenues increased 11% to $401K. Net loss applic. to Common totaled $7.4M, up from $2.8M.
Revenues reflect a rise in sales of internet/TV convergence products HyperTV, and online learning markets. Higher losses reflect a $3.4M stock appreciation rights loss, up from $64K.
General Instrument [GIC]
Like a rock. This one is getting the lions share of the cable boxes, in my opinion. . . as once more, T holds an equity interest. Ther digital set-top boxes will include an option to plug in your telephone for conversations over the net. T has already ordered millions of these, and I expect to hear about them being delivered any day now.
GIC is a worldwide provider of integrated and interactive broadband access solutions and, is advancing the convergence of the Internet, telecommunications & video entertainment industries. For the 6 months ended 6/99, net sales rose 16% to $1.05B. Net income totaled
$77M vs. a loss of $29.9M. Revenues reflect higher sales of digital cable systems. Net income reflects lower R&D expenses due to the absence of a $75M partnership note reserve charge.
clearstation.com To me, this is holding of T has the most potential of them all. . .and could be the Dell of the next decade. Here is another deal they recently signed with T's ATHM to "speed the deployment of broadband services to the estimated 15 million homes and businesses:" clearstation.com
Broadcom Corp [BRCM]
Broadcom makes the list from their recent development of a chip that replaces a half dozen chips in such systems as set-top boxes. MIPS may lose some sales as a result. . .probably why their price is down. Here is the way I understand it. . . . BRCM bought Maverick Network last year, and they have worked to develop this multi-layer chip technology, which BRCM had to previosly farm out to other makers [like MIPS].
Broadcom Corp. is a developer of highly integrated silicon solutions that enable broadband digital data transmissions to the home & within the business enterprise. BRCM's products enable the high-speed transmission of data over existing communications infrastructures. For the 3 months ended 3/99, revenues rose from $35.3M to $96.3M. Net income totaled $19.3M,up from $7.7M. Results reflect increased volume shipments of ICs & high-speed networking.
clearstation.com
Qualcomm, Inc. [QCOM]
There is just no stopping this monster. . . nor is there a way to jump on its back without just going for it. With the stock being just 30 bucks 6 months ago, I thought for sure we would see lower lows than 140 this summer. . .but once it pulled away back in June, it has never looked back. clearstation.com
QUALCOMM, Inc. designs, develops, manufactures, markets, licenses, and operates digital wireless communications, infrastructure and subscriber products, designs and services. For the 9 months ended 6/27/99 total revenues rose 19% to $2.88B. Net income fell 5% to $64.9M. Revenues reflect increased sales of CDMA subscriber and ASIC's products. Earnings were offset by a $52.5M charge related to the Ericsson transaction & TOU asset write-off.
And even though their primary business is cell phones, they are still one to own for their development of wireless systems. . . . email via phone. . .other devices that will allow wireless access of the internet. . .just really cool stuff. . .
QCOM is the largest company I am going to discuss here. . . we all know about T, LU, MOT, ALA, INTC, WCOM, PCS, etc. and their contributions to the broadband industry. . . these are staples for any portfolio. I am focusing on the companies we don't know as well.
OK, one more. . .
Nortel Networks [NT]
Nortel Networks designs, develops, manufactures, markets, sells, finances, installs & services fully digital telecommunications systems. For the three months ended 3/31/99, revenues increased 26% to $4.42B. Net loss applicable to Common before US GAAP totaled $470M, up from $32M. Revenues benefitted from increased sales for the wireless and broadband networks. Earnings reflect a $171M charge for acquired technology.
This is another sleeper, but with an enormous market cap. It is a telecom, yet it is squarely focused on the broadband industry and digital telecommunications. . . .it is not mired in tons of outdated equipment like many telecoms are.
clearstation.com
The price has pulled back some, and with the huge float I expect this one to move along with T, but at a brisker pace. . . as it has already showed it could triple in nine-months beginning last October.
That's it. . . no more. . .I have got to go.
Plenty to think about. . . plenty to study. . .
Don't leave your decision making up to others. For if you lose you will still have no one to blame but yourself.
Sosa hit 52? Is it my imagination? Or is every major sport showing a game somewhere on TV today? About the only game I don't see scheduled is hockey. . though figure skating is showing. For a few hours on a Sunday like this, charts no longer exist and companies are just banners near the sidelines. . or interruptions to the real fun. . .In most houses, its just armchairs, remote controls, maybe a beer and plenty of noise.
I can "feel" fall right around the corner. . . .and we all know what starts in the fall. . . .
Rande Is |
