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Technology Stocks : ORTEL -- Ignore unavailable to you. Want to Upgrade?

To: xcr600 who wrote (509)	11/8/1999 9:47:00 PM
From: t2	Read Replies (1) \| Respond to of 659

Did anyone see these interesting stories on Ortel from last week. Possibility of takeover by JDSU, SDLI, ETEK etc. quote.bloomberg.com. Ortel Shares Rises to Record Amid Speculation It May Be Bought Ortel Shares Rises to Record Amid Speculation It May Be Bought Alhambra, California, Nov. 4 (Bloomberg) -- Ortel Corp. shares rose 19 percent amid speculation that the maker of fiber- optic equipment for cable-television systems may be acquired by JDS Uniphase Corp., E-Tek Dynamics Inc. or SDL Inc. The shares rose 6 13/16 to 41 3/4, a record close. Alhambra, California-based Ortel has gained almost fivefold this year. Ortel makes lasers, receivers and other equipment used to update TV networks for voice and data services. That makes it a potential target for a larger maker of fiber-optic equipment that wants to expand into cable systems or gain new products, said Patrick Houghton, an analyst at Sutro & Co. ''This is an easy acquisition for an E-Tek, SDL or JDS,'' said Houghton, who rates Ortel a ''buy.'' ''They're one of the few companies that make optical lasers.'' Ortel Chief Executive Steve Rizzone declined to say if his company is planning to be acquired. JDS today agreed to acquire Optical Coating Laboratories Inc. for $2.82 billion in stock to help it meet surging demand for the optical components used in telecommunications networks. Last month, JDS agreed to buy Epitaxx Inc., which like Ortel is a receiver maker, for $400 million. Houghton said Ortel also is benefiting from its 18 percent stake in Tellium Inc., a startup maker of optical switches. He figures Tellium is worth as much as $5 billion, based on the success of Sycamore Inc., a rival startup that has a market value of $17.5 billion. Ortel call options were active today as investors bet the stock will move higher. Shares of other makers of optical components rose. E-Tek climbed 10 to 80. SDL rose 5 1/2 to 127. Harmonic Inc. gained 6 3/4 to 59. JDS rose 7/16 to 191 7/8. quote.bloomberg.com. Ortel Call Options Active as Investors Bet Stock May Gain Ortel Call Options Active as Investors Bet Stock May Gain New York, Nov. 4 (Bloomberg) -- Ortel Corp. call options were active in midafternoon trading as investors bet the stock will move higher, one options strategist said. Some 336 February 35 calls changed hands on open interest of 602. The calls rose 4 1/4 t0 11 1/8. The biggest block in 53 transactions was for 75 contracts, which may indicate most interest was by retail investors. ''They are expensive but someone is willing to pay up on these calls,'' said Scott Fullman, an options strategist at Swiss American Securities. ''There are expectations for a big move in the stock.'' Another 146 November 40 calls traded on open interest of 6, and 66 November 35 call contracts changed hands on open interest of 92. The 40 calls rose 3 13/16 to 4 7/8, while the 35 calls gained 6 1/2 to 9. With only 12 days until the November options expiration, any upside move in the stock must come soon for the buyer of the option to benefit. The underlying shares in the fiber-optic equipment maker rose 5 7/16 to 40 3/4 on volume of 1 million, almost 5 times the three-month daily average. The stock has gained 81 percent since reporting on Oct. 12 that it expects third-quarter earnings to approach 2 cents, beating the 2-cent loss then expected by analysts. Earnings estimates have since been revised upward to 1.8 cents a share. Ortel is expected to report on Nov. 23, after the expiration of November options.