<< Stratos certainly has a growing business, but their products seem to be nuts and bolts sub-systems similar to those produced by Molex and not cutting-edge optical components like those of NUFO and AVNX. Correct me if I'm wrong. >>
Thanks Pat. Since u are an expert on fiber optics companies, and I'm still working on my STLW DD. I would take your opinion that STLW is similar to Molex (now I need to use that yardstick to measure what's STLW's fair maket value).
Therefore you disagree BW's following statement to compare STWL w/ AVNX/NUFO (and probably SONS), see below.
I'm not worrying about the METHA spinoff yet, 6 months away. And we have PALM/COMS case to watch how the new PALM shares would be absorbed (PALM's SPX addition probably helps alot though).
businessweek.com
<<One analyst estimates that Stratos will generate revenues of about $110 million in 2000 and around $170 million in 2001. And he expects the company to continue making money. He figures that Stratos will earn 12 cents a share this year and 22 cents in 2001. At its current price of 34, Stratos has a market cap of $2.1 billion. Compare these numbers those of its peers and you'll realize how undervalued Stratos is, argue some of its supporters.
Avanex, which is expected to post revenues of $50 million this year, trades at 162 a share, has a market cap of $10.5 billion, and it has yet to make money. New Focus, also expected to post revenues of $50 million in 2000, is trading at 132 a share, with a market value of $7.7 billion. It isn't making money yet, either. And Sonus, also not yet profitable, is expected to post sales of $30 million this year. Trading at 186 a share, Sonus has a market cap of $11 billion. >>
EDIT: Pat, u r the best! A, FNSR, MOLX, and IFX are the leading competitors of STLW. We are wrong to discuss NUFO/AVNX/STLW here :)
<<Another Chicago company, while receiving less attention, is standing on firmer ground thanks to a steady stream of profits. Stratos Lightwave hopes to achieve stratospheric market valuations. In its favor, the market for anything associated with fiber optics is hot. Stratos is an optical-networking company, supplying gear such as transceivers and fiber optic connectors. The three customers generating the most sales are top-notch: Nortel, Cisco, and Alcatel. Its leading competitors include highfliers Agilent (NYSE: A - news), Finisar (Nasdaq: FNSR - news), Molex (Nasdaq: MOLX - news), and Infineon (NYSE: IFX - news).
>>
biz.yahoo.com |
