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 : SDL, Inc. [Nasdaq: SDLI] -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (1049)	3/28/2000 7:23:00 PM
From: sam	Respond to of 3951

With demand for optical-networking gear soaring, so are the stocks of most of the major companies in the field. Unlike many high-flying Internet concerns that report scant sales, however, these equipment manufacturers can somewhat justify their huge valuations because revenue and profits are rising rapidly. That makes equipment makers the closest thing to a sure bet in the world of Internet investing. Looking ahead, analysts believe the demand for optical equipment will only continue to soar as demand outstrips supply. As Conrad Leifur of U.S. Bancorp Piper Jaffray points out in a new report, fiber-optic networks possess greater capacity than any alternative means of transmission. "No other communications medium ? copper, coax, wireless ? comes close to the inherent bandwidth potential of optical fiber. As the cost of optical networking declines, fiber optics will become increasingly pervasive in telecom and cable TV networks," Leifur says. In particular, Leifur likes JDS Uniphase (JDSU: news, msgs), SDL Inc. (SDLI: news, msgs) and E-Tek Dynamics (ETEK: news, msgs) to benefit from the fiber-optics boom. JDS Uniphase is growing at more than 100 percent annually, excluding acquisitions. Both revenue and profit margins have been accelerating at SDL. And E-Tek -- which agreed in January to be acquired by JDS Uniphase in a $15 billion stock-swap -- is well positioned to sell specialized gear for use in metropolitan areas as carriers begin to upgrade the networks that ring major cities. Unfortunately for most small investors, big Wall Street clients have already caught on to these stocks. In recent trading, JDS traded at around 130 while SDL and E-Tek have hovered in a range in the low to mid-200s. cbs.marketwatch.com