Great article, dated 12/21/99... [DMIC Price Target: $29]
america-invest.com
10 Stocks to Watch Gain 44% in 3 Months
Tuesday, Dec. 21, 1999 13:41 PDT
By Richard Hefter, America-iNvest.com
This isn't just a retrospective, so bear with us for a moment
while we gloat: On September 9, we gave you our 10 MicroCap
Stocks to Watch.
Chief among them was Adaptive Broadband (ADAP), which builds
wireless and satellite-based systems to support ultra high-
speed Internet access. On that day, the Sunnyvale, Calif.-
based company announced it had successfully demonstrated how
voice and data can be effectively bundled over the Internet.
Since then the stock has more than doubled from 31 7/8 to
73 3/8. Adaptive wasn?t the only gainer.
Workflow Management, Inc. (WORK), acquirer and integrator of
graphic arts companies, has doubled from 13 * to 26 1/8.
Hot Topic (HOTT), mall-based specialty retailer of music-
licensed and music-influenced apparel, has risen from 27 3/16
to 48 5/8.
Molecular Devices (MDCC) has added nearly 10 points to 37 3/8.
Online financial publisher Telescan (TSCN), which has a
strategic relationship with our parent company,
GlobalNetFinancial, is also up nearly 10 points to 23 *.
Market researcher NFO Worldwide, Inc. (NFO) gained 8 points
to 21 11/16.
Agribrands International (AGX), Actrade International Ltd.
(ACRT) are arelatively flat, with Coulter Pharmaceutical Inc.
(CLTR) and Koala (KARE) being the only losers, off just a
point to 18 25/64 and 13 * respectively.
As a whole, however, the 10 are up a whopping 44.4%, compared
to just 5.3% for the S&P 500 during the same time period.
One new stock that could follow the pattern of the above 10
is Digital Microwave (DMIC), recommended to us by Needham &
Co. analyst Rich Valera, the same analyst who pointed us to
Adaptive Broadband.
"We believe strong buy-rated Adaptive Broadband and buy-rated
Digital Microwave have the strongest product cycles
of our covered companies and as such should command premium
valuations relative to other companies in the group," he says.
Valera believes the San Jose-based company has a commanding
position in the high capacity (OC-3) point-to-point
radiomarket with a product called Altium, the only 256 QAM
OC-3 radio available and which is shipping at a broader
range of frequencies than any competing products.
He adds, "We believe DMIC is on the verge of announcing
another OEM agreement of similar magnitude to the $100
million-plus three year agreement signed in October."
Trading at $20 1/8 with a target of $29, it's another stock
to watch.
Richard Hefter is editor of America-iNvest.com. |
