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 : John, Mike & Tom's Wild World of Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Logain Ablar who wrote (1390)	6/28/2000 2:57:00 PM
From: John Pitera	Read Replies (1) \| Respond to of 2850

Traders Edge: California Amplifier (CAMP) 28-Jun-00 09:30 ET [BRIEFING.COM - Damon Southward] It is that time of the quarter when swing-traders begin to position themselves in their favorite stocks in preparation for earnings season. With two weeks to go before Yahoo! reports, would normally begin to see accumulation of the stock in anticipation of the quarterly pre-earnings run. But advertising driven models are out of favor this quarter, and concerns exist that many such companies will come in light when their numbers are reported. The focus this earnings season will be on companies outside of the Internet sector that are delivering profits and have a history of posting upside earnings surprises. Trading Points CAMP is a manufacturer of antennas, microwave amplifiers and downconverters used in satellite video and terrestrial broadband applications. The company's satellite unit designs reception components for the DBS television market. CAMP is also a manufacturer of two-way transmission MMDS outdoor customer premise equipment for video, voice, data, telephony and networking applications. After several rocky years financially, CAMP has recently re-established credibility with investors. Last quarter's strong financial results played an important role in the resurgence... For the period, CAMP posted a 1900% year/year increase in net income and a 175% surge in revenues. This former micro-cap favorite has now delivered four consecutive positive earnings surprises. On average the company has exceeded estimates by 54%, including a 200% surprise in the November quarter. CAMP has successfully reinvented itself over the past year -- disposing of low margin business to focus on growth opportunities in the DBS satellite market. The transition was aided by the acquisition of the satellite television products division of Gardiner Communications for $9.3 mln. Sales of Satellite Products have been responsible for the lion's share of the company's year/year growth. Strong demand for satellite products is expected to drive earnings to $1.35 (P/E 26) in 2001, representing an 85% year/year increase in earnings. Based on the 50% per annum growth rate projected by analysts for the next five years, CAMP sports an uncommonly attractive PEG of 0.52. On Monday, company announced that it had been selected to join the Russell 3000 when the index is rebalanced on June 30. No mystery why there are only a couple of analysts who follow this stock: California Amplifier is a micro-cap company with very unpredictable earnings. Although company is expected to post a profit of $1.35 a share next year, representing 85% yr/yr growth, the reality of the situation is that these numbers are educated guesses at best. One delayed order or operational misstep would kill stock's momentum and probably destroy investor confidence in the company's growth story. We are not looking out that far in this piece... The stock is being highlighted based solely on its strong relative strength, perception of compelling valuation, and fact that company has a recent history of posting sizeable percentage gains on strong numbers (in most recent qtr, CAMP shares rallied 34% in response to earnings report)... More important, we think that CAMP is a stock that traders should have on their radar screens as a short-term play on technical events, meaningful news and earnings reports.