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Technology Stocks : Rockwell-Spins off Conexant (CNXT) -- Ignore unavailable to you. Want to Upgrade?

To: w molloy who wrote (322)	7/22/1999 8:28:00 PM
From: w molloy	Read Replies (1) \| Respond to of 2013

Breifing.Com.... CONEXANT SYSTEMS INC (CNXT) 51 3/4 +6 7/16: Shares of modem chipset manufacturer have been quietly making a great deal of noise over the past month, as stock has been picked up by investors as a cable and wireless broadband play. CNXT shares have soared almost 120% since Briefing.com first looked at the stock on March 09. Today, shares of the recent Rockwell International Corp. (ROK) spin-off trading at a new 52-week high on heels of news company expects to "significantly exceed" Wall Street earnings views for 3rd qtr. Conexant attributes the better-than-expected EPS to continued expansion in worldwide Internet infrastructure, which is spurring demand for the company's network access products. In response to the bullish forecast, BancBoston Robertson Stephens raises its FY99 estimate from $0.31 to $0.53 (an increase of 71%) and its FY00 forecast from $0.74 to $0.90 (up 22%). The firm also sees gross margins improving by almost 200 basis points on a quarter/quarter basis. Based on revised estimates, CNXT shares trade at 56x Robertson Stephens' 2000 forecast. While stock sports multiple of more than 2x projected 24% annual growth, should be noted that CNXT still trades at substantial discount to Price/Earnings multiple awarded Broadcom (BRCM), which currently trades at 102 times FY00 forecasts... The stock has established key support levels at $40 and $34.