Frank, and all.
I found this on AOL Marketday report. Sounding pretty interesting, and I thought it warranted posting.
Frank, I do know that they will be having a call. Call Meghan O'Shea or Gretchen Roede at 215-732-4100 for more info.
DC Miller
<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
AOL Marketday 04/24/98
Revisions Key: Date of last revision; N/new, +/upgraded, =/unchanged, -/downgraded
TELECOM EQUIPMENT......1...........2/24............(+)
Comment: Explosive growth in the soho (small office/home office) market, deregulation of the telecommunications industry, rapid Internet/intranet growth, demand for increased bandwidth to facilitate high speed data and increasingly complex audio/video transfers and tremendous opportunities to exploit underdeveloped foreign markets should enable the group to post average annual growth of 20%-25% over the next five years. These are the forces which enabled the group to recuperate so quickly and completely from the Asian flu which swept through the tech sector late last year. Though we contend that the industry/market will feel the impact of an occassional tremor from Asia's ongoing problems, dips should be perceived as good long-term buying opportunities. Valuations, while no longer cheap, are no cause for alarm. Given the very favorable industry conditions both domestically and internationally (Asia notwithstanding), and expectations for much better than market earnings growth, we are raising our rating on the group from a 3/2 (s/t neutral view assigned at height of Asian uncertainty) to outperform. Despite our optimistic forecast, stock selection remains key due to rapidly changing technologies, short product life cycles and stiff price competition. Lucent is the clear industry leader, though Nortel, Tellabs, PairGain, At Home, and Scientific-Atlanta are well positioned for future growth. Stocks: ADC Telecommunications (ADCT), Advanced Fibre Communications (AFCI), Andrew Corp. (ANDW), AtHome (ATHM), Ciena (CIEN), DSC Communications (DIGI), General Instruments , Lucent Technologies (LU), PairGain Technology (PAIR), PictureTel (PCTL), Qualcomm (QCOM), Scientific-Atlanta (SFA), Teligent (TGNT) and Tellabs (TLAB). |
