TLTK in Miami Herald 02.10.96
By Steve Halpern, The Miami Herald Knight-Ridder/Tribune Business News
Feb. 10--ANALYSTS EXPECT RALLY IN TELECOM STOCKS
Steve Halpern regularly reviews more than 400 stock newsletters, choosing wh at
he believes to be the most interesting or informed recommendations for inclus ion
in this column and his own newsletter, the Dick Davis Digest.
In light of President Clinton's signing of the landmark telecommunications b ill
on Feb. 8, many analysts expect stocks in this sector to rally. Here are a f ew
favorites.
Antec
Nasdaq (Symbol: ANTC)
52-week range: 11 1/8-26 3/4
Friday's close: 17 3/8
"Antec is a leading developer of transmission, construction and maintenance
equipment for the communications industry. Its products could be called the 'gra
vel' in the construction of the information superhighway. The company has develo
ped strong relationships with major cable operators such as Time Warner, TCI and
Continental Cablevision. In the future, Antec may be heavily involved with the
Internet and interactive entertainment. Although management owns only a small pe
rcentage of its stock, a number of them made open market purchases of ANTC durin
g the past few months. This is an encouraging sign that the stock may have seen
its lows. ANTC is a long-term buy at current prices. I would view any further pr
ice decline in the stock as a chance to buy more shares for a lower-average cost
."
Leo Hood,
Ripples in the Wave
Gainesville
Globalstar
Nasdaq (Symbol: GSTRF)
52-week range: 11 1/2-65 3/4
Friday's close: 56
"Globalstar has the potential to be the 21st Century's AT&T. It is developin g a
worldwide satellite system that will offer low-cost, high-quality voice tele
phony and other digital services on a wholesale basis to local telecommunication
s providers. This is very big. Although service won't even start until 1998, the
company has already signed up service providers for more than 50 countries. Ana
lysts predict the firm will break even in 1998, and earn more than $3 a share in
1999. The company is run by Bernard Schwartz, who built up Loral over the past 20
years, and has just sold the bulk of it to Lockheed Martin for more than $9 b
illion. In our opinion, that's the kind of man you want on your team."
Carlton Lutts,
Cabot Market Letter
Salem, Mass.
Tele-Communications Inc.
Nasdaq (Symbol: TCOMA)
52-week range: N/A
Friday's close: 21 5/8
"Tele-Communications Inc., better known as TCI, is the nation's largest cabl e
television operator. It's leveraging its vast infrastructure and large finance
resources to become an internationally dominant telecommunications firm. It's a
partner in several revolutionary projects, including a joint venture in persona l
communications service (PCS) auctions. Together with Sprint, Comcast and Cox, TCI
has become a partner in the largest PCS company in the United States. It's a lso
a partner with Primestar, which offers direct broadcast satellite service. T CI
also is getting ready to offer local phone service using its hybrid cables. W hen
its new ventures are proven successful, its stock will likely head for the h igh
20s. And that price target could prove to be conservative if TCI gets swept up in
the Internet mania. Buy below 22 for a 12-month target of 27."
Stephen Leeb,
The Big Picture
Alexandria, Va.
MicroTel International
American (Symbol: MOL)
52-week range: 9/16-1 11/16
Friday's close: 1 3/16
"MicroTel International is a profitable company in the digital communication s
industry. It counts many Fortune 500 firms among its customers, including AT&T
and the regional Bells. Management owns 30 percent of the stock. The firm is ag
gressively seeking acquisitions so that it can expand in the wireless and Intern
et communications industries. The stock could skyrocket to the 3-5 level in 1996
."
Bill Matthew,
Cheap Investor
Hoffman Estates, Ill.
Interdigital Communications
American (Symbol: IDC)
52-week range: 5-12 7/8
Friday's close: 9 1/4
"Interdigital Communications manufactures wireless telecommunications system s.
The stock has been weak since the company lost a legal case in which it sued
Motorola for patent infringement. Sales continue to remain strong, and Interdigi
tal is still appealing the Motorola verdict. Moreover, recent technical action h
as seen both stock and option volume increase substantially, often a precursor o
f good things to come for the stock price."
Lawrence McMillan,
Option Strategist
Morristown, N.J.
Teletek
Nasdaq (Symbol: TLTK)
52-week range: 1/2-3 3/32
Friday's close: 3 3/16
"Teletek provides long-distance international switching services throughout the
United States and certain foreign countries. Hi-Rim is part of the $70 billi
on-a-year industry that has a 10 percent annual growth rate. Its switching syste
m is considered by experts to be the Cadillac of switching equipment. Teletek ha
s seen approximately 10 percent profits in sales. Those, in turn, have increased
740 percent in five quarters. The firm appears to have successfully turned itse
lf around. We believe that if it can stay on track, it will provide substantial
profits for investors."
Vance Howard,
Savvy Investor
Huntsville, Texas
Colonial Data Technologies
American (Symbol: CDT)
52-week range: 12 1/2-27 1/4
Friday's close: 21 1/4
"Colonial Data Technologies, a leading supplier of telecommunications produc ts,
is best known for its Caller ID products. Earnings have been tripling on a y
early basis, and while that pace cannot be sustained, the future could hardly be
brighter. The company's new phone, Telesmart 4000, is a revolutionary new produ
ct that should be a big winner in 1996 and beyond. It lets consumers send E-mail
on the Internet, bank electronically and tap into databases for directory assis
tance. I expect a major move into international markets. The result should be ex
ceptionally powerful growth."
Bill Chidester,
Scientific Investment
Oakland, Calif.
ANTC,CDT,TLTK,IDC,MOL,TCOMA,GSTRF
END!A2?MI-HALPERN-COL
16:57 02-12-96 |
