BKHM.........more press on BKHM - it is a winner
by: 42potty993
8/5/00 9:32 am
Msg: 378 of 385
audioinvestor.pyxos.com
"WHOWEVER SAID THAT THE TECHNOLOGY SECTOR wasn't volatile? Tech stocks continue their wild and volatile
gyrations. The Nasdaq was nearing the 4,300 level in mid-July, only to reverse course and trade in the 3,600 area recently.
Jesse Soto, Senior Securities Analyst for the Highmark Mutual Funds, thinks the Nasdaq, along with the rest of the tech
sector, should see brighter days within the next six months. He especially believes the tech market will experience a relief
rally once the Fed decides whether to raise interest rates. "Once that is out in the air I think the market will begin to stabilize,"
Soto says.
One area Soto has been keeping his eye on is fiber optics. Fiber-optic component maker JDS Uniphase has been on a roll
acquiring other companies in the optics realm, including E-Tek Dynamics and SDL. "This merger mania has put a lot of
upward pressure on companies in the fiber optic space," states Soto. "The mergers in the fiber optic area bring to light how
capacity-constrained this segment of the market is. It's an area that is experiencing very high demand as companies try to
increase their infrastructure and provide next-generation services. . . Companies such as JDS Uniphase are willing to pay
rather large sums to acquire technology. It is testimony that it is a very difficult business to get into with high barriers to entry."
One company Soto likes in fiber optics is Bookham Technology (BKHM 58), which manufactures optical components
based on SOI (Silicon On Insulator) wafers using traditional semiconductor manufacturing techniques. Soto adds that
Bookham is addressing one of the biggest problems in fiber optics right now -- the availability of components. Soto states,
"Large volume manufacturing techniques haven't been developed yet in the fiber optic component space. Many of these
devices actually involve a lot of steps done by hand. By using traditional semiconductor manufacturing techniques, Bookham
is trying to do what Intel did for microprocessors, which is to bring down cost through manufacturing large volumes. . .
They're really the only one out there doing this on silicon. Most of its competitors are using a type of glass known as silica."
Bookham's high-profile customers include Nortel and E-Tek Dynamics (a division of JDS Uniphase)."......................BARRON'S: Not So Dry Martini: Five Picks And Two Pans From Europe's Top Fund Manager
By RICHARD EVANS
"Klaus Martini is bullish on Europe. The 43-year-old head of European equities at DWS Investment thinks Continental
Europe is returning to growth after years of stagnation, and he believes corporate restructuring there is finally starting to bite."
"One of his favorite European growth stocks is the British-based Bookham Technology, which produces specialized
microchips and components that help integrate optical and electric circuits. These chips, says Martini, will power the next
generation of broadband networks, which combine fiberoptics and traditional coaxial cable lines. These hybrid networks are
expected to deliver highspeed Internet access, video on demand, digital television and other services to both consumers and
businesses within the next few years.
"I believe they have developed better technology than anyone else so far," says Martini. "And I think they will be able to
mass-produce components and deliver them relatively cheaply." With the British start-up expected to convert a $21 million
loss this year to earnings of $11.8 million next year and $45 million in 2002, Martini thinks Bookham's American depositary
receipts, which recently traded at around $60, could go to $82.50 in 12 months and $105 in two years." |
