Celeritek(CLTK)- earnings up 1300% Message Board

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Technology Stocks : Celeritek(CLTK)- earnings up 1300%

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To: Bobby Sharma who wrote (26)	1/5/1997 10:35:00 PM
From: John Sydor	of 212

Cltk took a beating because EPS targets in the next quarter or two will not be met. The market reacts strongly to such news and GaAs fab/comm companies seem to be expecially volatile. As an example check out Anadigics (ANAD), which is in the same business (GaAs semis) as CLTK. On Sept 13 ANAD announced poor quarterly results and the stock collapsed from 34 to 22. Three and a half months later its up to 37. CLTK is one of a handfull of companies that produce GaAs devices needed for the front ends of high frequency radio systems such as Cellular, PCS, TVRO, LMDS, etc. This market is growing significantly. According to Texas Instruments (Electronic Engineering Times May 26, 1996 Pg 73), the GaAs device market is expected to grow from $193 M in 1996 to $ 475 M in 1998 and $ 972 M in 2000. Microwave Journal magazine in a recent article on GaAs technology and analysis of the industry predicts a 2 to 4 times growth in the GaAs market over the next 3 years. In that article, Celeritek was mentioned as a big player in this expanding market. Hang in for the long haul; GaAs is as important to RF comms products as rubber is to cars.

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