Dave,
Are you familiar with this competitor of TLAB? This is taken from Indvidual Investor:
Driehaus Capital: Finding Unique Growth Ideas
Associate Editor: Len Hollie 11/3/99
Richard Driehaus, founder, CEO and Chairman of Chicago-based Driehaus Capital Management Inc. says the general market remains technically weak and he believes market sentiment is moving towards becoming more stock specific.
"Fundamentally sound, high performing stocks will become more of the focus, instead of certain sectors that have been anointed the favorites," says Driehaus, who has been picking stocks and managing portfolios for nearly 35 years. Driehaus Capital manages $4 billion in international mutual funds as well as domestic private and institutional accounts.
"From those individual stocks, we think investors can find some very large market winners. We have already, but we think there are a lot more out there," he says.
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Another Driehaus favorite is DiTech Communications (NASDAQ:DITC - news) , a telecommunications equipment maker that designs, develops and markets equipment used in building and expanding telecommunications and cable communications networks.
Ditech's products fall into two categories, echo cancellation technology, which delivers, advanced voice quality, and optical communications, such as optical amplifiers, multiplexers, and transponders. Ditech's customers include worldwide local and long distance carriers, wireless and Internet telephony providers.
The stock hit a new 52-week high of $105.19 Tuesday, and ended at 101.88, up nearly 8% on the day.
"We love DiTech. It's in about a $500 million sector that is growing over 20% a year," says Driehaus. "They also reported positive earnings surprise for the most recent quarter-- $0.08 compared to the expected $0.05, and the revenue was about $2 million higher than Wall Street expectations", he says.
Driehaus says he saw that DiTech was getting a lot of product design wins over its nearest competitor, Tellabs Inc. (NASDAQ:TLAB - news). "They have the superior product and they are getting a lot of new contracts," notes Driehaus. |
