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To: Joseph Beltran who wrote (12450)	3/14/2000 10:47:00 AM
From: The Ox	Read Replies (1) \| Respond to of 14427

We've kicked around CLTK in the past, most recently when the stock was trading in the high-mid 20s. I must admit this run has caught me completely off guard as I expected the 'high end' of the trading range to be in the 30s. Small float has probably helped lift this boat. At this level I question the valuation but that can be said about so many stocks in this sector. I'm not sure the company has enough revenue to justify this price but their growth rate should be very solid going forward. I wish I had paid more attention to the daily trading in this one!

To: Joseph Beltran who wrote (12450)	3/14/2000 4:46:00 PM
From: SJS	Read Replies (1) \| Respond to of 14427

Celeritek (CLTK) 60 7/8 +8 1/4: A look at CLTK's Company Report shows an organization that is bleeding cash and is experiencing very little top-line growth. Then why has the stock rocketed more than 600% over the past four months. Give you two guesses at which theme has been behind the stock's blazing ascent. (B2B or Wireless were probably your answers)... Santa Clara, CA-based Celeritek is a designer of GaAs radio frequency integrated circuits (RFICs) and subsystems for wireless communication applications. The company's chips are used primarily in handsets for cellular and PCS systems and wireless local loop subscriber units... Stock has rallied as much as 24% on the session, to a new all-time high, after being upgraded from BUY to STRONG BUY at CIBC World Markets. The ratings bump comes on the heels of several new contract announcements made over the past week, including a $6.4 mln follow-on order for CDMA semiconductor products. CIBC World Markets believes the quarter is shaping up nicely for Celeritek. Accordingly, firm making positive revisions to its top/bottom line forecasts. CIBC's Q4 EPS estimate goes from a loss of $(0.27) to a loss of $(0.03), while revenue numbers are bumped up 11.4% to $78 mln... Rising estimates are nice, but what really drives stocks like CLTK this late in the move are price targets. According to the lone analyst following the company, Celeritek shares have an opportunity to add another 60% in market capitalization. CIBC derives its new $96 target price (up from $58) by applying a 20x multiple to projected fiscal 2001 GaAs revenues and a 4X revenue multiple to the company's RadioSat business... CLTK is another example of a company experiencing meager top-line growth, but has at least one product line that is posting triple-digit gains. In this case, the line is semiconductors. While company's defense sales tumbled 39% in the latest qtr and overall top-line increased 18%, semiconductor sales surged 127%... As analysts have discovered investors' willingness to purchase an ordinary company based on the growth prospects (and possible spin-off) of one extraordinary division, they have begun to strip down and package the various revenue streams. Over the past quarter or so, this new financial product has yielded big returns for companies, investors, analysts and their firms. But there is no question that this aggressive style of number crunching is a rabid bull market phenomenon that will leave many late-comers wondering how they could have been so gullible.