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.

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

To: Michael M who wrote (17807)	3/1/2000 9:39:00 AM
From: Tunica Albuginea	Respond to of 18016

What's up -- besidesÿ shares -- with Mitel? Terrence Matthews old company on the move in wireless semiconductors, TA ------------------------------------------------ ÿÿÿÿÿÿÿÿÿÿÿÿ A growing emphasis on ÿÿÿÿÿÿÿÿÿÿÿÿÿ semiconductors is making all the ÿÿÿÿÿÿÿÿÿÿÿÿÿ difference, ÿÿÿÿÿÿÿÿÿÿÿÿÿ Bert Hill ÿÿÿÿÿÿÿÿÿÿÿÿÿ The Ottawa Citizen; with files from Dow Jones ottawacitizen.com ÿÿÿÿÿÿÿÿÿÿÿÿÿ Don't look now but ÿÿÿÿÿÿÿÿÿÿÿÿÿ Mitel Corp. is ÿÿÿÿÿÿÿÿÿÿÿÿÿ suddenly one of the ÿÿÿÿÿÿÿÿÿÿÿÿÿ hottest technology ÿÿÿÿÿÿÿÿÿÿÿÿÿ companies in the ÿÿÿÿÿÿÿÿÿÿÿÿÿ business.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ Yesterday, the Kanata ÿÿÿÿÿÿÿÿÿÿÿÿÿ company announced ÿÿÿÿÿÿÿÿÿÿÿÿÿ that it has developed ÿÿÿÿÿÿÿÿÿÿÿÿÿ new gear with Philsar ÿÿÿÿÿÿÿÿÿÿÿÿÿ Electronics of Nepean ÿÿÿÿÿÿÿÿÿÿÿÿÿ and Matsushita of ÿÿÿÿÿÿÿÿÿÿÿÿÿ Japan that exploits a ÿÿÿÿÿÿÿÿÿÿÿÿÿ booming market for next-generation wireless products.ÿ ottawacitizen.com ÿÿÿÿÿÿÿÿÿÿÿÿÿ Mitel's stock hit $36 on the Toronto Stock Exchange ÿÿÿÿÿÿÿÿÿÿÿÿÿ yesterday -- more than five times the price last March and ÿÿÿÿÿÿÿÿÿÿÿÿÿ double the price in December. The shares later closed at ÿÿÿÿÿÿÿÿÿÿÿÿÿ $34.50, up $2.25 on the day. Mitel stock was last in this ÿÿÿÿÿÿÿÿÿÿÿÿÿ price range 17 years ago.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ Some analysts think Mitel might sell its slower-growth ÿÿÿÿÿÿÿÿÿÿÿÿÿ telephone equipment business in order to concentrate on ÿÿÿÿÿÿÿÿÿÿÿÿÿ the semiconductor business that is growing five times ÿÿÿÿÿÿÿÿÿÿÿÿÿ faster.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ After slumbering in the shadows of Nortel Networks and ÿÿÿÿÿÿÿÿÿÿÿÿÿ Newbridge Networks for years, Mitel is suddenly ÿÿÿÿÿÿÿÿÿÿÿÿÿ enjoying market excitement not seen since the early 1980s ÿÿÿÿÿÿÿÿÿÿÿÿÿ heyday of founders Terence Matthews and Michael ÿÿÿÿÿÿÿÿÿÿÿÿÿ Cowpland.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ The big reason Mitel is sporting a market capitalization of ÿÿÿÿÿÿÿÿÿÿÿÿÿ almost $4 billion is that it is increasingly a semiconductor ÿÿÿÿÿÿÿÿÿÿÿÿÿ company generating products for such hot new ÿÿÿÿÿÿÿÿÿÿÿÿÿ technologies as wireless, Internet and fibre-optics.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ "It's a very exciting market for us," said Geoff Norbury, ÿÿÿÿÿÿÿÿÿÿÿÿÿ director of global marketing for Mitel Semiconductor. ÿÿÿÿÿÿÿÿÿÿÿÿÿ "Our recruiting slogan is 'We're pumped,' and we really ÿÿÿÿÿÿÿÿÿÿÿÿÿ are these days."ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ Mitel revealed yesterday that it has developed low-power ÿÿÿÿÿÿÿÿÿÿÿÿÿ chip modules that will co-ordinate the next generation of ÿÿÿÿÿÿÿÿÿÿÿÿÿ electronic tools that road warriors and other mobile ÿÿÿÿÿÿÿÿÿÿÿÿÿ people rely on to stay in touch with customers and ÿÿÿÿÿÿÿÿÿÿÿÿÿ employees. Smaller than a matchbox, the modules will ÿÿÿÿÿÿÿÿÿÿÿÿÿ end the current cable mess by wirelessly linking personal ÿÿÿÿÿÿÿÿÿÿÿÿÿ organizers, cellphones and laptop computers.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ Keisuke Utsunomiya, general manager of Matsushita, ÿÿÿÿÿÿÿÿÿÿÿÿÿ which is best known for its Panasonic products, said the ÿÿÿÿÿÿÿÿÿÿÿÿÿ new product is more powerful, flexible and compact than ÿÿÿÿÿÿÿÿÿÿÿÿÿ the competition's.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ "We are well-positioned to lead the industry in mobile ÿÿÿÿÿÿÿÿÿÿÿÿÿ applications where power consumption and robustness ÿÿÿÿÿÿÿÿÿÿÿÿÿ are of critical importance."ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ Mitel's semiconductor business accounts for 45 per cent ÿÿÿÿÿÿÿÿÿÿÿÿÿ of sales and is growing at a 17-per-cent rate each quarter. ÿÿÿÿÿÿÿÿÿÿÿÿÿ The traditional telephone product market accounts for the ÿÿÿÿÿÿÿÿÿÿÿÿÿ rest but is growing only about two per cent annually.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ Mitel and its partner expect strong market demand from ÿÿÿÿÿÿÿÿÿÿÿÿÿ manufacturers in Asia-Pacific. The tiny plastic-covered ÿÿÿÿÿÿÿÿÿÿÿÿÿ modules will start shipping later this year and hit high ÿÿÿÿÿÿÿÿÿÿÿÿÿ volume runs in a year.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ The products are being developed under an industrywide ÿÿÿÿÿÿÿÿÿÿÿÿÿ standard, called Bluetooth, to stop the proliferation of ÿÿÿÿÿÿÿÿÿÿÿÿÿ conflicting and incompatible technical standards that ÿÿÿÿÿÿÿÿÿÿÿÿÿ currently bedevils cellphone users around the world.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ Most of the heavyweights of the technology world have ÿÿÿÿÿÿÿÿÿÿÿÿÿ signed on including Ericsson, IBM, Intel Corp., Nokia, ÿÿÿÿÿÿÿÿÿÿÿÿÿ Toshiba, 3Com, Motorola, Lucent and Microsoft.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ But the Mitel-Philsar-Matsushita combination is believed ÿÿÿÿÿÿÿÿÿÿÿÿÿ to be the first to announce products of its kind this close to ÿÿÿÿÿÿÿÿÿÿÿÿÿ market. Ericsson announced Bluetooth headsets and ÿÿÿÿÿÿÿÿÿÿÿÿÿ adaptors last week.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ Market estimates of the potential for Bluetooth-based ÿÿÿÿÿÿÿÿÿÿÿÿÿ products range from $3 billion to more than $9 billion in ÿÿÿÿÿÿÿÿÿÿÿÿÿ 2005.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ Mitel is moving rapidly into the fertile ground between ÿÿÿÿÿÿÿÿÿÿÿÿÿ semiconductors and wireless technology and capturing ÿÿÿÿÿÿÿÿÿÿÿÿÿ investor attention.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ Wireless product companies such as Nokia, Qualcomm, ÿÿÿÿÿÿÿÿÿÿÿÿÿ Research in Motion, SiGEM and International Datacasting ÿÿÿÿÿÿÿÿÿÿÿÿÿ have captured markets and analyst interest.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ Philsar of Nepean has achieved a rising profile for its ÿÿÿÿÿÿÿÿÿÿÿÿÿ work in radio transmitter chip products and for its ÿÿÿÿÿÿÿÿÿÿÿÿÿ high-profile chief executive Antoine Paquin.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ Matsushita Electronic Components is a big player in ÿÿÿÿÿÿÿÿÿÿÿÿÿ making and building semiconductor products.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ Amir Karim, who covers Mitel for Goldman Sachs, said ÿÿÿÿÿÿÿÿÿÿÿÿÿ that Mitel Semiconductor's business is expected to ÿÿÿÿÿÿÿÿÿÿÿÿÿ generate $608 million for its fiscal year ending March 26 ÿÿÿÿÿÿÿÿÿÿÿÿÿ and sales of $730 million the following year.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ HSBC Securities analyst Harshad Thanki said Matsushita ÿÿÿÿÿÿÿÿÿÿÿÿÿ brings expertise in manufacturing and technology as well ÿÿÿÿÿÿÿÿÿÿÿÿÿ as a big market for the new product.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ Some analysts think Mitel might try to sell its traditional ÿÿÿÿÿÿÿÿÿÿÿÿÿ telephone product line in order to make the company a ÿÿÿÿÿÿÿÿÿÿÿÿÿ pure semiconductor play likely to attract higher stock ÿÿÿÿÿÿÿÿÿÿÿÿÿ prices.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ It recently surveyed its institutional shareholders on an ÿÿÿÿÿÿÿÿÿÿÿÿÿ range of issues, including whether the company should ÿÿÿÿÿÿÿÿÿÿÿÿÿ sell its traditional telephone-related business.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ One fund manager who was surveyed believes a strong ÿÿÿÿÿÿÿÿÿÿÿÿÿ majority favoured a sale. But Mr. Thanki said Mitel is ÿÿÿÿÿÿÿÿÿÿÿÿÿ likely to keep the older product lines because they are ÿÿÿÿÿÿÿÿÿÿÿÿÿ useful in developing new Internet-based products Mitel ÿÿÿÿÿÿÿÿÿÿÿÿÿ will announce soon.ÿ ÿÿÿÿÿÿÿÿÿÿÿÿÿ The slow but steady growth of these products also ÿÿÿÿÿÿÿÿÿÿÿÿÿ counters the volatility in the semiconductor market.

To: Michael M who wrote (17807)	3/1/2000 10:12:00 AM
From: Tunica Albuginea	Read Replies (1) \| Respond to of 18016

Michael M, Re:Is it in " ALA's interest to buy as many NN shares as possible on American exchanges? ". The answer I think is yes. This is what I meant in my earlier post about" MMs manipulating the market ". Who is to say that ALA financiers are not doing some large block, well-timed sells of NN in NYSE, with the intent of keeping the lid on NN price and allow them to accummulate at a discount as many shares as possible at a discounted price? Of course you need a vivid imagination to buy this line!!! :-))) TA Message #17807 from Michael M at Feb 29 2000 9:41PM Claude, I assume the $50 options are Canadian dollars. Looks to me NN is committed to the deal. I don't see TM blowing off the money and spending every day of the rest of his life in court because of second thoughts about NN going it alone. I don't see Alcatel getting cold feet. They got the bargain of the century, IMO. Hard to imagine this being anything but the done-est of done deals. ON-THE-OTHER-HAND..... If another player takes a second look at the bride, the cost of cutting in on the dance looks like about $2 a share (U.S.) Whatever your version of the math is -- fine by me -- I'm easily confused by numbers. I'm positive on the ALA/NN deal. However, I think NN may yet be on a few other minds. BTW -- given gaps in ALA price (Fr/U.S.) and ALA/NN .81 exchange rate -- is it not in ALA's interest to buy as many NN shares as possible on American exchanges? Anyone? M