No mention of ATML, but still of interest:
Monday December 16 12:25 PM EDT
Montgomery Analysts See Bright Outlook for Technology
Stocks in 1997
SAN FRANCISCO--(BUSINESS WIRE)--Dec. 16, 1996--Montgomery Securities analysts
who attended presentations by more than 150 high technology companies last week at
Montgomery's 14th Annual Technology Week conference concluded that the technology sector is
poised for a strong year in 1997.
The analysts made their comments last Thursday in the closing session of the conference, which
featured presentations by industry leaders such as Microsoft Corp., Intel Corp., Seagate
Technology, Applied Materials and Cisco Systems. More than 500 institutional investors attended
the conference.
Investors reacted favorably to the presentations, and companies attending saw their stocks fare
well during the conference, despite the downturn suffered by the technology sector in general last
week. Among the 112 public companies making presentations, 30 companies hit a new 52-week
high during the conference. Some of the week's winners were SeaChange International (up
31.8%); Open Text Corporation (up 29.9%); and Information Management Resources (up
22.6%).
Several Montgomery analysts shared their observations about the outlook for their specific
industry segment after nearly a week of presentations by the companies they follow.
In the software segment, analyst David Readerman predicted an extremely strong year in 1997,
with a forecasted 35 percent growth in earnings compared to 1996. Microsoft continues to see
strong demand and should be a "core holding" in all technology portfolios. Among Readerman's
stock recommendations is Open Text Corp., which he identified as a corporate repositioning
story.
Semiconductor analyst Jon Joseph said that the "semiconductor inventory correction is over." He
was particularly impressed that Micron Technology, a leading maker of memory chips (which
suffered an 80 percent price decline this year), is still extremely optimistic for 1997. After hearing
the company's presentation, Joseph raised his rating on Micron Technology to a "BUY." He also
recommended Integrated Device Technology, which has experienced a 30 percent increase in
sequential quarterly orders.
Wireless communications analyst Matt Robison made several stock recommendations following
the company presentations, including DSP Communications, Proxim, Illinois Superconductor and
Stanford Telecommunications.
Enterprise software analyst Bob Austrian reminded attendees that this is the "dawn of the
enterprise software era." Austrian noted that the size of the industry remains relatively small
compared to the opportunity to assist corporations with the development and implementation of
software that can be used throughout their organizations. Austrian has calculated that the combined
sales force of the entire enterprise software industry is still only 300 people, suggesting that there is
substantial room for growth in the coming years.
Austrian suggested that investors look at Aspen Technology, Siebel Systems, Remedy
Corporation, Scopus Technology, and Restrac.
Semiconductor manufacturing equipment analyst Brett Hodess noted that after a major slowdown
in orders for new manufacturing equipment, "we are nearing an order bottom." Hodess reported
that industry leader Applied Materials told investors at the conference that its orders are expected
to be up 5 to 10 percent in its current quarter compared to the previous quarter. Hodess observed
that semiconductor manufacturing equipment stocks are down about 40 percent from their
52-week highs, offering investors a buying opportunity now, before there is a more demonstrable
upswing in new orders. Among Hodess's stock recommendations are GaSonics, Altera and Actel.
Jeffrey Lin, data storage analyst, said that "the demand for data storage remains insatiable."
Companies poised to benefit from this ongoing trend include Seagate Technology, Quantum,
Western Digital, Smartflex Systems, SCI Systems and Sanmina Corp.
Montgomery Securities is one of the nation's premier investment banking and institutional
brokerage firms. Dedicated to growth companies, Montgomery combines focus and specialization
in Research and Investment Banking with bulge-bracket capabilities in Global Distribution and
Large-Block Trading.
CONTACT: Montgomery Securities
Elizabeth Snowdon, 415/627-2747
esnowdon@montgomery.com |
