THE WEEK AHEAD, from WallStreet City:
State of the Market Jan 21 2000 6:30PM CST
The Week Ahead
wallstreetcity.com
Excerpts:
Earnings Releases
The markets will remain in the thick of earnings reporting season next
week as more than 500 companies are set to release quarterly numbers.
The earnings docket is heavily weighted by banking institutions, energy
companies and, of course, high-tech concerns.
High-tech companies lead the way next week with over 300 tech stocks set
to report. Wireless technology giant Qualcomm announces earnings on
Tuesday along with two Houston, Texas based tech firms BMC Software
and Compaq Computer. Both Compaq and BMC Software have had their
troubles in the past as well - both announcing disappointing revenue
streams in the last twelve months.
On Wednesday, storage behemoth EMC reports its quarterly figures to
Wall Street. EMC has a habit of surprising analysts, announcing better
than expected earnings figures in three of the past four quarters. EMC was
expected to net $0.31/share in its fiscal fourth quarter. Also reporting on
Wednesday is fiber optic leader JDS Uniphase. JDSU is expected to
earn $0.16 a share in the company's second quarter ended December
31st. JDS Uniphase, as a stock, has been a model of consistency over
the last twelve months - gaining over 1200 percent in that time with very
little downside volatility.
With the sheer number of companies reporting next week coupled with a
full docket of economic releases, it should be another exciting and volatile
week on Wall Street.
Industry Groups
The Machinery Glass Products {.GLA} weighted index posted the largest
relative gain of the week as Corning Inc. {GLW} single-handedly pulled it
higher. The stock posted a one-week gain of 38 percent and traded
almost twice its thirty-day average volume. GLW is one of the world's
largest suppliers of glass for fiber optics, and renewed momentum in
high-tech fiber optics companies has been fueled by industry giant JDS
Uniphase {JDSU} - which is on the acquisition trail.
JDSU announced its plan to acquire E-Tek Dynamics, Inc. {ETEK} in a
deal worth an estimated $15 billion on January 17. JDSU is also in the
process of acquiring Optical Coating Lab. Inc. {OCLI}; news of this merger
drove OCLI stock to trade as high as $450 per share last week. ETEK
stock also soared to unthinkable heights on the news. Driving the surge of
interest in fiber optics companies are projections that capacity on fiber
optics networks is doubling every nine to twelve months. Fiber optics
technology is moving rapidly into the driver's seat of the
telecommunications revolution as advancements in microchip and
semiconductor technology become seemingly asymptotic. Microchip and
semiconductor technologies have, by no means topped out, but progress
in these industries has advanced so quickly that manufacturers are
struggling to maintain the axiom that microprocessor speed doubles every
eighteen months. More than twenty years of this exponential growth has
driven technology to new extremes, and now manufacturers of
semiconductors await advancements in optics in order to continue
cramming more circuits into smaller spaces.
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And for those who missed Barron's yesterday:
Message 12646973
Message 12647334
TA
To: t2 who wrote (4976)
From: t36
Sunday, Jan 23, 2000 2:07 PM ET
Respond to Post # 4987 of 4987
great readings in barons about jdsu....many different places its mentioned..hot hot hot!!!!!!!!!!!!!!!!! extremely positive..one fund manager sees jdsu
a 10 year hold with earning revenues incresing 50% during the next 5 yrs and said with the new aquisition of etek , jdsu will have 70% of the
market share of the sector...lots more.. |
