Technical analysis for shorts & longs Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical analysis for shorts & longs

SPY 652.56

-1.5%

4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: j g cordes who wrote (17609)	8/14/1998 1:13:00 PM
From: Johnny Canuck	Read Replies (1) of 68156

Jim, I still follow ANDW. ANDW makes most of it money from selling cable to wire transmission towers for cellular (analog, CMDA, GSM) and shelters for housing telecommunications equipment. From a fundamental point of view I don't know of any reason for ANDW ot make a big move here. Internationally their business has been good especially in Latin America. China is a big future opportunity for them. What has hurt them is the slow down in the deployment of celluar in the US. Most of the first stages of the GSM and CDMA networks have been built out and most service providers are only expanding as cash flow allows. There are some signs that subscriber growth in the US is slowing after the intial burst of interest. Their business model has changes slightly. They are seeing margin pressure all the time since there is very little to differential their product from competitors. As a result their lead times for order are now only a few weeks. It makes it hard to predict revenues and earnings Q to Q. ANDW typically gets orders at the late part of a cellular network deployment as the towers get wired last. Big multi-year deals are also no longer a part of the business model because of the pricing and mutiple source customers buy only when needed. In terms of bright spots, the privatization of Telebras should help ANDW a lot. ANDW supplies to NT who has a good shot at winning a good portion of the contract. ANDW supplies the other major wireless equipment companies too. I don't expect contracts for Brazil till early 1999 though. Future prospect are LMDS( Local multi-point digital distribution) which is digital broadband services for the wireless local loop and digital TV. LMDS is estimtes to be a 3 billion dollar business in 5 years time. Digital TV is slow to deploy but it is happeninig. Summer would be the time that towers get wired in the US, so this should be one of their stronger Q's. It is hard to say though as order shipment visiblity is not good. Harry

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next