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Technology Stocks : Scientific Atlanta -SFA- going up ???
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To: Allegoria who wrote (943)10/20/2000 8:41:02 AM
From: Lee Lichterman III  Read Replies (2) of 1045
 
I would hope so. I listened to the Conference call and didnt hear anything bad that I can recall. I almost choked on my coffee during the Q&A when an analyst commented that after MOT, GI and HLIT had seen slower optical transmission sales that it was apparent that SFA was eating them for lunch and even more so in RF. Comment was made that STBs will grow equivalent to the past 20 year growth in PCs. Broadband up 98%, optical X-mission up 91%, broadband up 98%, I missed the number on subscriber bookings but it was either 105% or 185%, over all X-mission was up 15%. Best of all, margins were at 15.3% or up 6%.

It was also pointed out that the customers are adequately funded for the next 24 months so slowdowns shouldn't be a problem and they also pointed out they do not finance anyone, there is little receivable risk. I noted earlier that the cash levels were up 115%.

Last night I saw that Morningstar wrote about how SFA was too high. I went to their website and their hyping EXDS, EBAY and SDLI among others. I almost laughed myself to death until I finally wrote the analyst an e-mail pointing out he doesn't think 30% growth in the wall street darlings trading at 120 PEs are too high, he doesn't think the other Fiber plays nor the internets are too high but he thinks that according to his own numbers, 70% growth and a PE of 50 is too high? It will be interesting to see his answer. Obviously they must either be short or the ones that sold all those 55 strike calls that expire today.

Good Luck,

Lee
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