Found this interesting note about Furukawa. If folks remember, these guys own a lot of JDSU, and are time-to-time sellers of their position. Look at their growth projections for optical equipment including lasers: 100%. I kinda like that, being the gorilla we are!
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TOKYO, July 7 (Reuters) - Shares in Japan's Furukawa Electric Co Ltd hit a record high on Friday after it said it will double output of semiconductor lasers for optical amplifiers, and UBS Warburg raised its target price on the stock. <p>
Furukawa's <5801.T> shares surged by their 400 yen daily limit to a best-ever 2,675 yen, and ended morning trade up 15.38 percent at 2,625 yen, on Thursday's news it would almost triple laser-related investment to 10 billion yen from 3.5 billion yen so as to double output to 100,000 units by the end of the year. By early afternoon the shares had edged down to 2,580 yen. <p>
In addition, UBS Warburg on Friday raised its target price on the maker of electric wires and cables to 3,800 yen from 2,400 yen and maintained a "strong buy" rating. Furukawa said its move was aimed at meeting surging demand in North America for optical amplifiers used to transmit wavelength division multiplexing (WDM) signals along optical fibre cables. <p>
WDM increases the data-carrying capacity of optical fibres and demand for such large-capacity circuits is rising, reflecting rapid global growth in Internet usage. <p>
Furukawa expects optical communications equipment including semiconductor lasers to generate sales of 50 billion yen in the business year to next March and 100 billion yen the year after. UBS Warburg analyst Conny Jamieson raised his forecast of Furukawa's group sales of WDM-related devices to 101.2 billion yen from his previous forecast of 75.1 billion yen. <p>
Jamieson also expects Furukawa's operating profit to grow by an average 40 percent over the next five years. |
