This is from TheLion.com "The Traders Network," sent by a day-trading friend. I don't know the site, so don't know how widely-read it is.
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STOCK ALERTS
Sector strength in fiber optics and optical lasers continued on Friday. After blowing away earnings estimates last night GSI Lumonics (GSLI) gained $4 15/16 to $22 1/16 (+28%). After the bell the company announced a new client and 1.5 million contract. Investors will undoubtedly take notice of this stock in the coming weeks. The company's market capitalization of $750M compares favorable with the value of similar multi-billion dollar stocks such as SDL Inc (SDLI), Sycamore Networks (SCMR), Avanex (AVNX), and E-tek Dynamics (ETEK). We feel GSI is one of the last true bargain optical networking plays similar to the now bought-out Netoptix (OPTX) by Corning (GLW) for a $2B price tag. In fact, industry-wide consolidation in the networking industry makes GSI a prime take-over target.
Another optics stock currently under accumulation is Methode
Electronics (METHA). The company announced Wednesday the spin-off of their fiber optics division.
We think that Ravisent (RVST), a digital tv technology
infrastructure leader, will begin to attract value investors as the stock is off by more than 60% since its high last month. We believe Ravisent is a long-term play with much potential in the horizon. An agreement between television makers and cable operators announced earlier this week will fuel the demand for cable-ready digital sets within 18 months.
Inso Corp (INSO), an xml-based B2B and B2C player, looks ripe for bull-raiding ahead. Inso's DynaBase technology is the most proven solution for managing and delivering e-content destined for B2B, intranet/extranet and e-commerce use. DynaBase powers a growing list of global customers including 3Com, AT&T, GTE, Cisco Systems, and UUNet.
We are beginning to accumulate some of the blue chips again as we feel they are very much oversold at this point. Stocks to watch include Schering Plough (SGP), SBC Commmunications (SBC), Merck (MRK), Phillip Morris (MO), and Wells Fargo (WFC). Hold any blue-chips, stay patient, and wait out the storm.
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