Jane, if you look at GEMS, also look at Powerwave (PWAV),
Spectrian (SPCT) and Microwave Power Devices (MPDI). They are
GEMS competitors.
I've been trading PWAV on and off for 2 years, so am familiar
with this area (wireless amplifiers), I work in a similar field,
I grew up within 100 miles of GEMS IL plant. But, then I don't follow GEMS as closely as the three above, since GEMS
is clearly the least competitive of all power amplifier makers IMO.
GEMS last year lost competitiveness in the market to the above
three suppliers, and the price dived. Also the industry consolidated
some last year (PWAV bought out HP's power amp bus.), and the industry was out of favor because a lot of the wireless uses for these products is ASIA/South America. Last year these companies all dived
with the "Asian Crisis".
But if you look at companies like PWAV, though, you can see it has already rebounded. In fact, I am out, as it is near a peak IMO. The
industry is very niche market, and cycles.
So it seems that GEMS is also a TMEX pick(?), but it looks ill advised to me, IMO. PWAV has already recovered, and MPDI and SPCT may be better short term plays if there is still a recovery in this
industry (the feeling that ASIA contracts are not going away, etc.). GEMS, may tag along with the recovery, but there business is still
questionable IMO.... and they'll be the first to tank when this
area cycles down: wouldn't get caught holding the bag IMO.
I am too busy to go into more detail at this moment, welcome any
criticisms. But please also compare GEMS, SPCT, MPDI, and PWAV
before jumping in GEMS. That will give you a feel for this sector.
good luck, and best wishes,
Waldeen |
