Today's surge was apparently caused by the following article in money central as you mentioned.( see url or cut and pasted text below).
However, shortly after the close, Celeritek came out and threw some water on these statements.
Celeretik stated:
"It does not have an indium phosphide process nor does it make indium phosphide chips. Celeritek has no knowledge of TRW's plans. The comments and projections in MoneyCentral are solely those of the author and, as with all third party commentary, are neither authorized nor endorsed by Celeritek. "
Regards.
Jose.
Disclosure: No current position, but I did have an open order to short this at 30, but it never hit. Oh well.
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moneycentral.msn.com
Celeritek: the next wave of semiconductors
The sprawling swath of suburban industrial parks that sprang up around Stanford University was dubbed Silicon Valley after the glass-like material that was the main ingredient in the first semiconductors. Later, a new material called gallium arsenide, or GaAs, supplanted silicon in the world's fastest chips. And now another new material, called indium phosphide, threatens to take over the lead in speed.
According to a spokesman for TRW Inc. (TRW), chips made from this material operate at a super-fast 69 gigahertz, which means that telecommunications switches powered by them will be able to shoot data through a fiber-optic network at 40 gigabits a second -- about 20 times faster than today's state of the art, and four times faster than the 10 gigabit-per-second switches in development today. Moreover, TRW believes 200 gigahertz levels are achievable for chips made from this substance.
TRW says it plans to come out with indium phosphide chips as soon as next year, but there's a much-smaller company that appears to have a lead over rivals in the space: Celeritek (CLTK), of Santa Clara, Calif. At a current market cap of just $145 million, it would garner a robust 3,000% to 9,000% gain if it simply were able to get to the size of fellow wireless and telecom chip makers Vitesse Semiconductor (VTSS), RF Micro Devices (RFMD) and PMC-Sierra (PMCS), which have market caps ranging from $6 billion to $10 billion.
Celeritek certainly has the right backers. Among the largest holders, according to federal regulatory filings, is Firsthand Capital Management, which was an early backer of PMC-Sierra and Vitesse. And to top it off, the stock is cheap, trading at just 3.5 times sales, in contrast to the 24 sales multiple accorded to RF Micro or the 51.7 sales multiple accorded to PMC-Sierra. Even better, InGaP (as indium gallium phosphide chips are called in the trade) is not the only compelling component of Celeritek's story: The company is gaining influence as a prime vendor of components and systems for fixed-wireless broadband systems, a relatively inexpensive technology that could overtake in-ground fiber-optic loops in popularity over the next few years.
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siliconinvestor.com
Celeritek Responds to Market Commentary
SANTA CLARA, Calif., Jan. 5 /PRNewswire/ -- Celeritek (Nasdaq: CLTK), a manufacturer of GaAs RF ICs and subsystems for the wireless communications market today commented on an analyst report in response to inquiries received from investors.
In response to a report by Jon D. Markham dated January 5, 2000 in MoneyCentral Investor, Celeritek has made the following statement. Celeritek has previously announced that it has an InGaP (indium gallium phosphide) HBT (heterojunction bipolar transistor) process. It does not have an indium phosphide process nor does it make indium phosphide chips. Celeritek has no knowledge of TRW's plans. The comments and projections in MoneyCentral are solely those of the author and, as with all third party commentary, are neither authorized nor endorsed by Celeritek.
Celeritek does not normally respond to reports about its business published by third parties, but is commenting on the MoneyCentral report in light of the unusual volume of inquiries received from investors.
Celeritek designs and manufactures GaAs RF ICs and high frequency radio products for wireless communications. The company's products are used worldwide by leading manufacturers of wireless communications systems.
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SOURCE: Celeritek, Inc.
CONTACT: Peggy Smith of Celeritek, Inc., 408-986-5060 |
