Ron, MRVC expected to be first to market with Gigabit Ethernet next month,
a few months ahead of the pack. MRVC also was the first to introduce
100-megabit Ethernet to market. This company has a history of being
first to market with step-change technology and beat out the big boys
like Cisco to the punches. The 100-megabit and Gigabit products are going
to make MRVC tons of money. 3Q sales from 100MB Ethernet switches are
suppose to be explosive...
See the reference to MRVC below from IBD market report on 9/4.
Young
--------------------
From IBD 9/4/96:
The Nasdaq Stock Market closed mixed yesterday as strong gains in
blue chips were offset by erosion in small caps. The Nasdaq composite
index picked up 0.79 point, or 0.07%, to 1142.29. But declines led 2,277
to 1,464. Post-holiday volume was an anemic 395 million shares. By
comparison, the NYSE composite added 0.2%. The Amex market value
index slipped 0.3%, or 1.89 points, to 557.79.
NASDAQ, AMEX MARKETS
Among blue chips, INTEL CORP. added 1 1 3/16 to 81 5/8 and ORACLE
CORP. 2 to 37 1/4. CISCO SYSTEMS INC. rose one point to 53 3/4. The
networker is buying privately held Granite Systems Inc., a developer of
Ethernet switches that move data at speeds of up to one billion bits per
second. That's 10 times faster than top speeds currently in use. Cisco will
pay $220 million in stock. Granite is expected to market its gigabit switch
early next year. MRV Communications Corp. is expected to be first to the
market with a gigabit entry next month. MRV rose 1 3/4 to 21 3/4.
ASCEND COMMUNICATIONS INC. rose 2 1/2 to 54 7/8. The networker
announced a major upgrade to its Max server, the most popular computer
used by providers of Internet access. Max TNT can hook up 2,000 PC
users to the Internet, compared with 96 for the old model.
''When we first introduced the Max three years ago, no one had any
idea what kind of demand Internet- access providers would be faced
with,'' said Bernie Schneider, Ascend's vice-president of marketing.
Schneider also said the TNT cuts server costs by 20% to 30% per
Internet subscriber.
MCAFEE ASSOCIATES INC. leapt 2 5/8 to 62 1/4 on double its
average volume. It's bundling its network-security software for Windows
NT with Seagate Technology Inc. software used for back-up and
disaster recovery.Elsewhere in software, BMC SOFTWARE INC. gained
1 1/2 to 76, ELECTRONICS FOR IMAGING INC. 3 to 66 3/8, INSO
CORP. 1 3/8 to 52 5/8, CITRIX SYSTEMS INC. 1 5/8 to 43 5/8,
NATURAL MICROSYSTEMS CORP. 1 3/4 to 43 1/2 and LEGATO
SYSTEMS INC. 1 3/8 to 40 7/8. GT INTERACTIVE SOFTWARE CORP.
gained 2 to 19 on twice its usual trade. The developer of computer war
games said it will introduce more than than 30 titles for the Christmas season.
Pro-forma operating earnings in the quarter ended in June rose to eight
cents a share from a weak three cents a year ago. Sales have accelerated
to 138% from 102% from 82% over the past three quarters.
INSIGHT ENTERPRISES INC., a direct marketer of PCs, rose 1 to 26 3/4,
breaking a 13-week base on triple its usual volume. For the second straight
week, the Retail-Wholesale Computers group has been the No.1 industry
among 197 tracked by INVESTOR'S BUSINESS DAILY for six-month
price performance. Elsewhere in the group, CHS ELECTRONICS INC. gained
1 5/8 to 13 5/8. HMT TECHNOLOGY CORP. gained 2 to 20 on four
times its normal activity. The developer of thin film-disks is up 27% since
securing $50 million in unsecured credit for product development last Wednesday.
ANICOM INC. rose 1 1/2 to 17 3/4 on triple its average volume. The
supplier to computer networkers is buying privately held rival Norfolk
Wire & Electronics for $8 million. Norfolk had sales last year of $20 million.
DEKALB GENETICS CLASS B jumped 2 to 34 1/2, an all-time high.
DeKalb is up 7% since it won a patent last week on corn plants developed
to resist glufosinate, an herbicide. ACCESS HEALTH INC. jumped 3 1/2 to 54 1/4.
Creative Multimedia, developer of an interactive CD-ROM on medical information,
will promote Access Health's medical-advice phone service. The stock fell 7 1/2
late last week after Bear Stearns & Co. cut it to ''attractive'' from ''buy,'' based on
price. Earnings are expected to rise 400% this year and 53% next.
INBRAND CORP. rose 1 1/2 to 30, an all-time high. The stock burst out
of a 15-week base on nine times its normal volume. It's up 9% since an
already bullish Merrill Lynch & Co. issued a report on Aug. 29. The company
makes adult-incontinence products. Earnings rose 56% in fiscal fourth
quarter ended in June, reversing three periods of declining profit.
REGAL CINEMAS INC. rose 2 to 39 1/4 on double its normal activity.
The stock split 3-for-2. Shares of the theater chain had been sliding from
a split-adjusted 40 3/4 since the company announced the split on
Aug. 19. Earnings, up 45% in the June quarter, are expected to increase
35% this year. DAVE & BUSTERS INC. rose 2 5/8 to 24 5/8. The operator
of restaurants that feature virtual- reality systems is expected to earn
19 cents a share this quarter vs. a weak three cents a year ago.
The Iraqi conflict sparked buying in oil and gold issues. On the Amex,
TEXAS MERIDIAN RESOURCES CORP. gained a point to 13 7/8
and GETCHELL GOLD CORP. 1 5/8 to 45 3/8 on triple its average
trade. On the downside, YOUTH SERVICES INTERNATIONAL INC.
plunged 5 to 14 3/8. The company, which runs boot camps for troubled
youths, warned it fell short of earnings estimates of 14 cents a share for
the quarter ended in June. The company cited costs associated with
its buyout of Introspect HealthCare Corp.
////////////////////////////////////////////////////////////
Copyright (c) 1996 Investors Business Daily, All rights reserved.
Investor's Business Daily - NASDAQ, Amex Markets (09/04/96)
Nasdaq Leaders Gain But Breadth Is Weak
By C. Kinou Treiser
Transmitted: 9/5/96 12:04 AM (a3adeaex) |
