Grammy, you may be right about MM manipulation on DIGL....the small float would make it easier to manipulate. DIGL had been a high flyer and it looks like the recent sell-off may be due fo several reasons but the most convincing one that I've found is the concern about meeting future earning's estimates. DIGL has a history of not meeting the estimates, they either blow them away or fail to meet expectations. When a stock carries such a high PE, the earnings are the whole story.
DIGL was a POW for us in Nov. Not much has changed other than two more analysts have initiated coverage: strong buys from Lowenbaum and Co 12/1 and Tucker Anthony, buy on 12/5.
So far we have Grammy and Jim in the pro DIGL corner and Kevin's
TA is indicating a breakdown. I have to throw my opinion into the pro corner for next week. DIGL looks like a buy to me right now.
Looking for opinions from the SWATs and all on DIGL.
Our report on DIGL from Nov.:
DIGITAL LIGHTWAVE INC.
Nasdaq : DIGL
Address:.................................................................................601 Cleveland Street, Fifth Floor
.................................................................................................Clearwater, FL 34615
Phone:....................................................................................(813) 442-6677
Website: ............................................................................... lightwave.com
DIGL manufactures advanced computer systems that provide information concerning the
performance of lightwave telecommunications networks and transmission equipment.
EXECUTIVE SUMMARY:
* INSIDE OWNERSHIP
About 76% of the shares are held by Bryan J. Zwan, the chairman and CEO.
Institutions own 9.1%.
* MEDIA ATTENTION
Company was featured in The New America section of Individual Investor Daily on
Sept. 18, 1997. The story is available on the company website.
lightwave.com
The Company is a presenter at the CMA Trade Show in New York, Nov. 11 -13th.
cma.org
DIGL will participate in the PTC trade show in Hawaii and the ComNet trade show
in Wash. D.C. in January.
*BROKERAGE COVERAGE
On October 10, 1997 Soundview Financial issued a STRONG BUY RATING on DIGL based
"on the positive outlook of the company and the continued demand for fiber-optic
transmission systems and the need to monitor them. The company has a premier customer
base, new products in the works, and a strong balance sheet."
On Sepember 30, 197 CS FIRST BOSTON issued a STRONG BUY RATING on DIGL and set
a price target of $28/share.
On September 26, 1997 Southeast Research Partners issued a STRONG BUY RATING on DIGL
and set a price target of $21 TO $25 per share.
Furman Selz analyst Michael Neiberg issued a 14 page Company Report on DIGL. Report
highlights: "The company should experience dramatic growth in 1997 fueled by the rapid
acceptance and market share gain of its initial product, the ASA 312 Network Information
Computer.
* STRONG EARNINGS/BALANCE SHEET
Last quarter's earnings report announced in October beat estimates by over 60%. Profit
margins are in the 70% range. . The company will continue to benefit from a loss carry
forward for tax purposes.
Highlights from the balance sheet include:
1. Cash and equivalents are $44 million.
2. Long term debt is virtually non existant at $95,000.
3. Sales and Marketing expenses decreased 12% from 96 down to 22% of
sales
4. G/A expenses decreased from 7/1/96 - 9/30/96 of 21% to 11% for the
same period in 1997. G/A expenses also decreased from 15% for the second
quarter of 1997 showing management's ability to keep internal costs in
line while handling the company's expansion.
biz.yahoo.com
* NEW MARKETING INITIATIVES
The Company has increased its sales and marketing efforts resulting in a larger volume of
orders for the second quarter of 1997 than in all of 1996.
The company is now expanding its customer support infrastructure and initiating an
international sales and marketing group.
The "Remote Access Agent" family of products was recently launched
* IMPROVED MANUFACTURING/TECHNOLOGICAL CAPABILITIES
The company significantly expanded its manufacturing capacity moving the final assembly,
test and burn-in operation to a new 13,000 square foot manufacturing facility.
Digital Lightwave has established a Center of Excellence in New Jersey, with a core of
leading object-oriented network management software designers.
* LARGE CUSTOMER BASE
Customers include leading telecommunications companies, such as WorldCom, MCI,
AT&T, Sprint, Regional Bell Operating Companies, GTE, Time Warner, TCG, and Brooks
Fiber Properties, Inc.; and equipment manufacturers such as Tellabs, Nortel, Lucent,
Alcatel and NEC. Sales to MCI, Ameritech and Pacific Telesis Group accounted for 25%,
19% and 15% of the 1996 total, respectively.
ALL THE REST:
* Float is only a tiny fraction of total shares ouststanding.
tradepbs.com
* Telecomm Equip Industry
quote.yahoo.com
* Short Interest
viwes.com
* Vectorvest
vectorvest.com
* New Management
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* Product Info
Main product is the ASA 312. A series of Remote Access Agents are in
field testing which allow an operator to monitor system performance and
quality from a central monitoring station. Additional planned products
are: 2 Enhancements to the 312 including a new model to serve
international markets. A notebook platform which would basically be
used to intervene and alter traffic routing. Network Digital Assistants
will assist in the anaysis of network performance. Virtual Switching
products to provide a means of delivering EXPANDABLE BANDWIDTH from
the public network to a customer premise. |
