slob,
I agree with all the figures you quote, except that the P/E is
based on trailing earnings. The scary aspect of MLIN is the revenue
decrease, specifically bookings going from $19M to $16M to
$13M during the last 3 quarters. I am even wondering if they
have any faat Ethernet clients left.
Basically, except for a possible buyout, I see MLIN drifting
slightly lower until the next earnings report. I will keep
an eye on it, but I did not want to be caught in a semi
downdraft holding MLIN, one of the worst performing
companies in the sector.
I think that the strongest area in high tech stocks
is communications. I have a large long term position in LOR,
and provided that its earnings do not disappoint, ANDW
may start to be attractive. I have also done very well with
my holdings in LARS, a networking equipment company.
Other companies I am looking at: HLIT, and CVUS (a
LMDS company-- the company is unimpressive, but they got
for free an LMDS license for New York which may be undervalued
by the market-- the LMDS auction for all remaining LMDS
licences in the US is early December). Even ASND might
start to look innteresting one or 2 months from now, once
we can get a better idea of how it is doing during the
current quarter.
I find the semi sector somewhat expensive. I looked
carefully at 3 stocks: LSI, PMCS and IDTI, but somehow
I cannot get really excited about any of them, although
they appear reasonably valued.
Best of luck, |
