Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: Redhook who wrote (28533)	1/5/2000 11:17:00 AM
From: U Up U Down	Read Replies (1) \| Respond to of 43080

Could these 4 stocks soar 10,000% in 10 years? Some of it sounds like the stuff of science fiction. But a few companies seem to have ideas or ambitions so immense that investors could bid up shares at least 100-fold by 2010. (Or not.) moneycentral.msn.com Celeritek: the next wave of semiconductors The sprawling swath of suburban industrial parks that sprang up around Stanford University was dubbed Silicon Valley after the glass-like material that was the main ingredient in the first semiconductors. Later, a new material called gallium arsenide, or GaAs, supplanted silicon in the world's fastest chips. And now another new material, called indium phosphide, threatens to take over the lead in speed. According to a spokesman for TRW Inc. (TRW), chips made from this material operate at a super-fast 69 gigahertz, which means that telecommunications switches powered by them will be able to shoot data through a fiber-optic network at 40 gigabits a second -- about 20 times faster than today's state of the art, and four times faster than the 10 gigabit-per-second switches in development today. Moreover, TRW believes 200 gigahertz levels are achievable for chips made from this substance. TRW says it plans to come out with indium phosphide chips as soon as next year, but there's a much-smaller company that appears to have a lead over rivals in the space: Celeritek (CLTK), of Santa Clara, Calif. At a current market cap of just $145 million, it would garner a robust 3,000% to 9,000% gain if it simply were able to get to the size of fellow wireless and telecom chip makers Vitesse Semiconductor (VTSS), RF Micro Devices (RFMD) and PMC-Sierra (PMCS), which have market caps ranging from $6 billion to $10 billion. Celeritek certainly has the right backers. Among the largest holders, according to federal regulatory filings, is Firsthand Capital Management, which was an early backer of PMC-Sierra and Vitesse. And to top it off, the stock is cheap, trading at just 3.5 times sales, in contrast to the 24 sales multiple accorded to RF Micro or the 51.7 sales multiple accorded to PMC-Sierra. Even better, InGaP (as indium gallium phosphide chips are called in the trade) is not the only compelling component of Celeritek's story: The company is gaining influence as a prime vendor of components and systems for fixed-wireless broadband systems, a relatively inexpensive technology that could overtake in-ground fiber-optic loops in popularity over the next few years.