The Wall Street Transcript Publishes Communications Equipment Stocks Issue
NEW YORK, Jan. 10 /PRNewswire/ -- Three leading analysts and top management from 23 Communications Equipment firms examine the Communications
Equipment sector in the latest issue of The Wall Street Transcript 212-952-7433 or twst.com
In a vital review of this sector for investors and industry professionals, this valuable 130-page Special Issue features:
1) Investing in the Communications Equipment Industry -- In an in-depth Analyst Roundtable (15,300 words), Cristin Armacost, Senior Vice President of
Telecommunications Infrastructure with Tucker Anthony Cleary Gull, Kenneth Leon, Global Sector Head with ABN AMRO and Luke Szymczak, First Vice
President in the Equity Research Department of Prudential Securities examine the influx of venture capital funding in the sector, IPOs, rapid technology changes,
niche growth opportunities, globalization, cable modems, DSL, access concentrators and subscriber management systems.
The expert panel analyzes the future of broadband optical, transport, switching, enterprise and service providers, valuation issues, cap ex spending, data/voice issues,
cellular outlook, carrier system future, M&A activity, regulatory horizon, the outlook for the sector and shares specific stock recommendations.
While GSM is a wireless global standard today, Szymczak states, "The standards bodies worked with the manufacturers and they set that standard, and that's what
we know today as GSM, whereas here in the United States it was much more of a free-for-all. We had a single analog technology across the U.S. but for digital,
some RBOCs agreed to go with one standard (CDMA) and Cellular One went with another system (TDMA), both of which are standards in terms of there being a
standards body that supports them. But here in the U.S. we have essentially four different digital cellular technologies when you count NEXTEL (Nasdaq: NXTL) as
well, and it's up to each operator to make sure it has relationships with other operators in other regions so that roaming can be supported. So we have essentially
four technologies across the U.S., each of which is a standard, but none is promulgated by the government, whereas if you were to have a cellular license in
Germany, it is stipulated that GSM must be used, or else you can go home and forget it."
For a free brief interview excerpt in which Leon lists ratings (from hold to outperform) for several Communications Equipment firms, see
archive.twst.com
The panel goes on to offer recommendation about which sector stocks are most likely to reward investors.
In the mid-cap area, Leon states, "We think the cable equipment area still has opportunities. Scientific-Atlanta (NYSE: SFA) is another name that we like for its
premier position in cable infrastructure. It and General Instrument are the two dominant suppliers for cable infrastructure and digital set-tops. We would say that
ADC (Nasdaq: ADCT), which has been a laggard on valuation, is another play on last-mile equipment suppliers."
Of 3Com (Nasdaq: COMS) and its planned IPO of its Palm Pilot business, Szymczak asserts, "I think it's reasonable to assume that that Palm business, which next
year could have a $1.1 billion run rate, could attain a 15 times revenue multiple after it goes public. Remember, consumer names within the Internet space and within
the new era of technology are very attractive to retail investors, and I think Palm will get that retail interest. So it's tough to predict the valuation following the IPO,
but I think that Palm should get a good one."
Armacost declares, "We also have some opportunistic ideas. These are companies that are benefiting from the fast-growing markets, are gaining market and mind
share, and are still somewhat under-valued. In the small-to-medium business market, we like a company called eSoft (Nasdaq: ESFT), which has developed an
Internet appliance. Its best known competitor is Cobalt (Nasdaq: COBT). However, eSoft also licenses their software to such companies as Hewlett-Packard and
Intel. We have a target price of $60 in the next 12 months. In the IP telephony space, I like InterVoice-Brite (Nasdaq: INTV) and Comverse Technology (Nasdaq:
CMVT). These guys are benefiting from the build-out of enhanced and IP-based voice services. We have a target price on InterVoice of $36. Finally, in the DSL
space, we like Redback Networks. But one company that has not appreciated as much as the other DSL vendors is Interspeed (Nasdaq: ISPD). They focus on the
business DSL market, targeting business complexes, apartment buildings and malls. We have a target of $36 on Interspeed."
This 130-page Investing in Communications Equipment Special Issue also includes:
2) The TWST confidential Off-The-Record survey of management performance at 19 Communications Equipment firms asked market insiders about the ability of
management teams to create shareholder value by successfully managing their firm's financial side as well the ability of top management to execute operationally in
this rapidly evolving sector.
Firms reviewed in Off-The-Record include:
3Com, ADC Telecommunications, ADTRAN, Advanced Fibre, Alcatel, Aware, Cabletron, Cisco, Ericsson, General Instrument, Lucent, RF Micro Devices,
Motorola, Nokia, Nortel, Pairgain, QUALCOMM, Scientific-Atlanta and Tellabs.
3) 23 extensive (average 2,500 words) CEO Interviews with top management from the following sector firms discussing their future plans and outlook for their firm
and the Communications Equipment sector:
Active Software, Adaptive Broadband, ADC Telecommunications, Advanced Fibre Communications, Applied Innovation, Applied Signal Technology, Belden,
Brooktrout, CIDCO, Elcotel, EMS Technologies, Globecomm Systems, mPhase Technologies, Micronetics Wireless, Netrix, P-COM, Plantronics, SDL, Secure
Computing, Spectrian, SSE Telecom, U.S. Wireless and ViaSat.
To obtain a copy of this insightful 130-page report, see twst.com or call 212-952-7433. This special section is also included in the
TECHNOLOGY Sector of TWST Online at twst.com
The Wall Street Transcript is a premier weekly investment publication interviewing market professionals for serious investors for over 35 years. Available at
twst.com TWST Online provides free interview excerpts. For highlights, recent recommendations by analysts and money managers and business news,
visit twst.com
Do a free search of the extensive TWST Online Archives at archive.twst.com
The Wall Street Transcript does not endorse the views of any interviewee nor does it make stock recommendations.
SOURCE: The Wall Street Transcript
CONTACT: Peter McLaughlin of The Wall Street Transcript, 212-952-7433 |
