Here is my attempt: Sawtek, but it is a falling knife now.
From Briefing.com
Sawtek (SAWS) 49 1/4 -5/16 : Okay, you missed out on Superconductor Technologies (SCON) jump from $3 at the start of the year to well over $80. The reason Superconductor Technologies rose from a market cap of less than $25 million to more than $600 million on a revenue decline (annually), is because it announced it had moved into filters for wireless phone base stations, had made more than 100 installations, and had a backlog of 56 more. An additional reason, of course, is simply that the stock became hot, as the volume chart shows. And maybe you missed the run on Ditech Communications (DITC), which makes filters that eliminate echo on phone calls, and ran from about $13 when Briefing.com first profiled it on August 18, 1999, to over $100 recently. That run also had a good dose of hot stock chasers. But if you are really interested in filter components as a play on the wireless boom, Sawtek is worth a look. Sawtech's filters are based on surface wave technology (which is where SAW-tech comes from). Sawtek's filters are common in the handset itself, but they are widely used in base stations as well. In addition, Sawtek is also in the space/military marketplace. But Sawtek is practically a value investment lately, having lost about 50% of its value in the past month. That loss is overdone, however, we think, as Sawtek is likely to benefit from the wireless explosion, and continue its solid revenue growth (even though it is 12 times bigger than SCON). The recent flap over insider selling rumors doesn't bother us at all. (Insider selling as an indicator is a very overrated indicator; people sell for all kinds of reasons. Insider buying, however, happens for only one reason.) Neither does the Qualcomm announcement that they are going to begin building filters for handsets as well bother us, much. Sawtek has a well established position. All Sawtek really needs, to become the next SCON or DITC, is a healthy dose of hot stock chasers, but that of course, is fickle. - RVG |
