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

To: DOUG H who wrote (630)	2/2/2000 9:38:00 AM
From: James Fulop	Read Replies (1) \| Respond to of 659

Courtesy Wolvmar on the Yahoo thread... >>Telecom Equipment Including both telecom and telecom-equipment companies, our screen turned up 10 phone warriors, any of which could split at any moment. Of those 10, the likeliest prospects are Comverse Technology (CMVT), a Woodbury, N.Y., provider of wireless-messaging technology, and Ortel (ORTL), an Alhambra, Calif., manufacturer of fiber-optic telecom equipment. Comverse has split twice since March 1993, including last April, when it split to around $90 a share (it's around $140 right now). Ortel has admittedly never split, which makes it more of a gamble, but it's never really had an opportunity ? it had never broken the $50 barrier until Nov. 11 of last year. Much of the market's interest in Ortel comes from two events. First, Ortel has signed an exclusive agreement with Lucent Technologies (LU) to provide its 980 nm pump lasers to the telecom giant. Next, the company has increased its ownership stake in Tellium, a private maker of optical switches that also has a deal with Lucent. Using the $25 billion market capitalization of Sycamore Networks (SCMR) as a guide, Cruttenden Roth analyst Dave Kang estimates Tellium's value at $3 billion at least, which means that were it to be sold or go public Ortel would become a considerably richer company. However, buying Ortel as a way to get into Tellium pre-IPO is speculative investing, and Prudential Securities analyst John Butler refers to it as a "dangerous game." For investors willing to take a risk on a stock that's risen 1,200% over the last year, this could turn out to be a bargain ? or a fiasco ? albeit one that requires a lot of due diligence. Either way, the company's next quarterly report is scheduled for Feb. 22, and quarterly reports are always great times for splitting. << smartmoney.com