By: its_outta_here $$$
Reply To: 50340 by AmericanMade57 $ Tuesday, 11 Jul 2000 at 7:25 AM EDT
Post # of 50345
Link -- U.S. Global's Bonnel on Scientific-Atlanta Shares: Comment
By Jonathan Make
quote.bloomberg.com
San Antonio, July 10 (Bloomberg) -- Arthur Bonnel, manager of the Bonnel Growth Fund at U.S. Global Investors, talks about Scientific-Atlanta Inc., a maker of television set-top boxes. The company's Explorer 2000 connects to digital broadcasts with hundreds of channels. Its shares have more than tripled this year, for the best performance on the S&P 500 Index.
``The main driving force behind this stock is the Explorer 2000. They have geared up production to ship twice as many of the set-top boxes, and that is going to start hitting the top line and the bottom line over the next 6 to 12 months. Their backlog looks like it will expand. Sales should probably increase about 20 or 30 percent year over year. We like the company because it has very little debt. It's loaded with cash, which gives it the wherewithal and flexibility to do R&D (research and design), to perhaps buy out some competitors.''
``Pretty soon everyone is going to have digital television in their home, but it will take a while. It's not going to happen overnight, but over the next three to five years. And that's where you make money, not just today. There is the tremendous opportunity for growth. It's forcing restaurants and lounges to buy the digital television. People are saying `hey, we want this.' The more they sell the more it will bring down the cost.''
``Here is a tech company in a high-tech arena that has been around for years. I knew about this company back in the late '60s, early '70s. They've had ups and downs, but they really got caught in a great deal here with this switchover to digital television. They're making money and from what I can see they've been profitable as far back as the mid '80s. You're betting on a company that is already profitable. Many of the dot-coms, probably 90 percent of them won't be around in five years. They'll be gobbled up by companies like Scientific-Atlanta. |
