Hi Rob:
Yes, Kevin Landis had a positive comment for STXN.
Unfortunately he also mentioned PCOM and NTRO,
alluding only tangentially to PCOM's awful balance
sheet and NTRO's overvaluation. Here is the quote.
``Landis: ... First let me talk about the wireless area
in general. The most overlooked group there is the
fixed wireless companies.
Q: For Example?
Landis: Digital Microwave, which just changed its name
to DMC Stratex Networks. P-Com, which has just been a
train wreck of a stock. And it is in the penalty box,
big time. Netro, which is probably the most popular
stock in the group. And there are several others, but
fixed wireless is an important market. Most office buildings
don't have fiber connected to them. And if you want to get
on the Internet, high-speed access, you stand a better
chance of getting on affordably and quickly by putting a
dish up on your roof than you do waiting for someone
to give you a fiber optic line. So we are pretty high on
those companies. The most expensive stock in the group
has a market cap of around $2 billions. And the problem
child of the group, P-Com, is actually under $100
million in market cap right now. So they have great
opportunities ahead of them. And that's a real great way
to play the growth in wireless technology.
Q: How did the problem child become a delinquent, and
what makes you think it will straighten out?
Landis: Everybody in the group is blaming their failure
to live up to expectations on their subcontractors, the
assemly companies. They all then swear up and down now
that they have done what they need to do to get their
supply under control, and get their supply chain ready to
run. These companies have a great potential. And they are
very affordable.''
Comment: I think Landis is off wrt to NTRO's market cap.
I seem to recall a $4B market cap.
Regards,
Bernard Levy |
