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Technology Stocks : Advanced Fibre (AFCI) ** IPO

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To: lml who wrote (2972)4/18/2000 2:55:00 AM
From: E_K_S  Read Replies (2) of 3299
 
That's quite interesting 1M1. Many of the other AFCI ratios compared to the S&P 500 (the standard benchmark) are also quite high and no real bargain IMO. But I still like the company (their management) and the industry sector which many of these ratios can not measure. Also, these are snapshots of the prior periods balance sheet. We know that the company looking forward is quite different especially with several new multi-year contracts under their belt.

The PE ratio from this page includes the CERENT's one time sale (a hidden diamond in the rough). I understand the company has invested in another start-up with very good long term potential (perhaps as profitable as the Cerent deal).

What caught my eye was the Capital Spending - 5 Yr. Growth Rate of 103.55. It appears that AFCI spends over three times more than the Industry Sector in this area! This is very good and bodes well for new future technologies.

The only other item I noticed was another one of my long term technology plays, PLCM. My cost on this company is also around $8 and I see it made the list behind AFCI in market cap. ranking.

I still believe AFCI is quite expensive but compared to its recent high of $89, I guess one could consider it a bargain (ie 1/2 price sale).

EKS
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