CIEN, SCMR, etc. A good synopsis of the communications sector from cbs.marketwatch.com...
NEW YORK, Mar 3, 2000 /PRNewswire via COMTEX/ -- Twenty-one leading analysts and top management of thirty-three Technology firms examine the Robertson Stephens Technology 2000 sector in the latest issue of The Wall Street Transcript (212-952-7433) or <http://www.twst.com/info60.htm> .
In a crucial review of this sector for investors and industry professionals, this valuable 174-page Special Issue features:
1) Communications Equipment -- In an in-depth Analyst Interview (2,600 words), Paul Silverstein, Senior Analyst with Robertson Stephens, talks about the communications equipment data networking sector, growth in end-user demand, modernization of newly privatized telecom companies, and deployment of broadband services. Silverstein favors the communications equipment industry as a great place for investors to be placing money.
Silverstein states, "This is a sector that is experiencing extremely robust demand. There are two fundamental drivers that are mutually reinforcing. One is phenomenal end-user demand being driven by the Internet. The other trend, along with the phenomenal demand for bandwidth and services from communications service providers, is competition among service providers unleashed by deregulation".
Silverstein declares, "smaller companies such as CIENA (Nasdaq:CIEN), Advanced Fibre (Nasdaq:AFCI) and Carrier Access (Nasdaq:CACS ) that are focused on one particular market segment of the communications equipment industry, have the advantage of focus. Advanced Fibre, has a product that not only is extremely technologically capable but also has been out in the field for several years now, deployed extensively throughout North America as well as outside of North America, and the company has the benefit of an impressive base of reference accounts. The same comment can be made with respect to CIENA, which I should have mentioned before. It will certainly be one of the participants in terms of the need for additional capacity in the core carrier network. CIENA addresses optical networking. It addresses essentially every segment of the optical networking industry. CIENA is a company that, when it wins, wins on the basis of technology and focus; on the other hand, it is true that when it loses it tends to lose, due to lack of marketing clout."
According to Silverstein, "the North American providers have been much faster to get off the dime and to address this opportunity, in part because North America has been in the lead in deploying these services, in particular the traditional large, integrated communication equipment providers -- Lucent (NYSE:LU ), Nortel (NYSE:NT ), Alcatel (NYSE:ALA ), Ericsson (Nasdaq:ERICY), Siemens, Nokia (NYSE:NOK), along with Cisco (Nasdaq:CSCO) from the data networking world. Lucent and Nortel (which was the first to identify the opportunity and address it), coming out of the traditional voice world have moved much more quickly than have their European competitors in terms of addressing demand. Now, it is true that those European competitors are moving quickly to try to catch up, but most of them find themselves behind the eight-ball, with the notable exception of Nokia, which obviously has a great platform addressing wireless. Ericsson's wireless business is also very strong."
"The investment community, having taken note of the phenomenal runs of Cisco, Microsoft (Nasdaq:MSFT) and Intel (Nasdaq:INTC), has been embracing those companies perceived to be facing similar market opportunities and has to date been willing to pay up to on these companies early on in the cycle. So in this marketplace, what we tend to focus on is relative valuation, looking at a company relative to the other companies in the sector," Silverstein notes.
Silverstein asserts, "if you compare CIENA to Sycamore (Nasdaq:SCMR), to other next-generation companies that have gone public in the last year, CIENA is not expensive. Relative to Sycamore, it's one-third the valuation, and that would be the most direct comp."
Silverstein also says, "Core holdings, certainly include Lucent and Tellabs (Nasdaq:TLAB), as well as Nortel. Tellabs' Titan digital cross-connect system generates approximately 60% of the company's revenue. The product has done phenomenally well, and right now I think it is fair to say it is exceeding most investors' expectations."
This 174-page Robertson Stephens Technology 2000 Issue also includes:
2) The following Robertson Stephens Tech 2000 Analyst Interviews (avg. 3,000-words) include:
Outlook for Robertson Stephens, Robert Emery
Outlook for Tech 2000, John Rohal
Business Software, Eric Upin
Semiconductor Capital Equipment, Susan Billat
eNetworking Software, John Powers
Outlook for Computer Hardware, Daniel Niles
Outlook for eServices, Stephen Birer
Next Generation Networks, Paul Johnson
Outlook for eBusiness, Marshall Senk
eTailing, Lauren Cooks Levitan
Outlook for eFinance, Scott Appleby
Outlook for Semiconductors, Arun Veerappan
Computer Services & Outsourcers, Andrew Jeffrey
Outsourced Infrastructure Services, Richard Juarez
eMarketing, Lowell Singer
Digital Media Infrastructure, Arnab Chanda
eBusiness Applications, Kash Rangan
European eBusiness Software & IT Services, Sharon Corr
Network Storage, Dane Lewis
3) 33 extensive (average 2,000 words) CEO Interviews with top management
from the following sector firms discussing the outlook for their firm
and the Technology sector:
For a complete list of CEO interviews see <http://www.twst.com/info60.htm>
To obtain a copy of this insightful 174-page report, see <http://www.twst.com/info60.htm> , or call 212-952-7433. This special section is also included in the Technology Sector of TWST Online at <http://www.twst.com/subscribe/techno.html> .
The Wall Street Transcript is a premier weekly investment publication interviewing market professionals for serious investors for over 36 years. Available at <http://www.twst.com> . TWST Online provides free Interview excerpts. For highlights, recent recommendations by analysts and money managers and business news, visit <http://www.twst.com/newspage.html> .
Do a free search of the extensive TWST Archives at <http://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
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