One possible scenario for NSATF:
California Amplifier Inc. (CAMP) 29 1/8 +2 1/16: In this analyst's book, 1999 will go down as the year of the opportunist. From air conditioning repair companies remaking themselves into Internet services providers, to no product, zero revenue bleeders (as in bleeding capital) baiting daytraders into their stocks with tantalizing press releases, 1999 has seen no shortage of opportunistic entrepreneurs playing the rabid bull market for everything it's worth. While many of these transformations could have been interpreted as dubious in nature, there have been some instances of companies legitimately reinventing themselves in an attempt to keep pace with rapid shifts in market tastes. California Amplifier falls into the latter category. The Camarillo, CA-based maker of microwave amplifiers for the broadband wireless industry had watched its operating numbers and stock hit the skids as the domestic and international market for its wireless products began to evaporate. From fiscal 1998 to 1999, CAMP's top-line tumbled more than 20%. At one point a $50 stock, CAMP shares crumbled to $1.44 a share by December 1998.. But the company's fortunes have changed dramatically over the past nine months. After posting five consecutive quarters of losses, the company returned to profitability in the February qtr. But the real turning point came in April, when CAMP acquired satellite television products from Gardiner Communications. Price paid: $9.3 mln. This move set up CAMP's entry into the the U.S. DBS satellite market, which has been the driving force behind the company's resurgence. For the qtr ended August 28, CAMP reported that sales jumped $10.25 mln (or 123%) to $18.6 mln. Sales of of Satellite Products accounted for $9.9 mln or almost 97% of the top-line improvement... The drastic improvement in operating performance hasn't gone unnoticed. On a year-to-date basis, CAMP shares have soared more than 3000%. Partly responsible for the surge in in the stock has been the accumulation of the issue by institutions such as Fidelity Funds, which recently reported holding a 12.2% stake in the company... Today, CAMP shares trading at a new 52-week high on volume of 422K... Based on First Call survey of 2 analysts, CAMP expected to turn a profit of $0.27 (P/E 108) this year and grow earnings almost 90% to $0.51 (P/E 57) next year... CAMP certainly is not a stock for the weak of heart. Issue has always had a history of volatility. And with no significant support levels between here and $20 per share, a shift in momentum could quickly lop 30% from the stock price. - DS
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