OT: "The AMAT of Fiber Optics" (Recent Bloomberg magazine) I wonder if anyone has any comments on NEWP, Newport Corp, a supplier of fiber optic test/measurment/automation equipment to the fiber optic industry.
The analysts are negative on the fiber optics sector now, but loved the sector early last fall. This is one positive. The fundamentals look very good to me (e.g. PEG ratio), but they have/had a backlog of orders, which has caused earnings to hold up well in this downturn so far. They have lots of cash, and the stock is way down from the highs. I have been nibbling at this one on weakness, and wonder what others on this thread might think of NEWP. One article I read said that "data traffic is doubling every 100 days". If so, it seems that sooner or later this sector should recover. I am guessing the money will come from somewhere to pay for the buildout of the internet, but I am not sure exactly how it will work out. The telecom companies of course are not spending much right now, given their financial situation.
Any comments are appreciated.
John
PS FWIW, Larry Kudlow the Economist on CNBC said last night he thinks the Nasdaq may go to 4,000 by early next year. I like this guy, hope he is right. Not many have such a bullish view on the Nasdaq these days, which is probably a good thing. |
