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Strategies & Market Trends : Stock Watcher's Thread / Pix of the Week (POW) -- Ignore unavailable to you. Want to Upgrade?

To: phbolton who wrote (35347)	6/29/2000 4:14:00 PM
From: Jason Flora	Respond to of 52051

SMRA - from Yahoo board: "Somera Communications (SMRA) 14 15/16 +15/16: In recent weeks, Briefing.com has argued that smaller-cap stocks with good growth prospects will outperform their larger-cap brethren, largely because the big boys continue to trade at very high valuations relative to their growth... The same is not true for many small-cap companies that are still flying below most traders' radar screens... One such example is Somera Communications... SMRA, which came public late last year, took a beating during the tech meltdown this spring... Decline had little to do with company's underlying business and more to do with overall sector woes... SMRA provides new, de-installed and refurbished telecommunications equipment, as well as services to the telecom/wireless industry... Revenue growth has been very strong over the past several quarters, and there is nothing to suggest a slowing in top-line momentum... While it isn't unusual for newly public companies to enjoy strong top-line growth, it is unusual for them to be profitable... However, as we have noted on several occasions in recent weeks, earnings visibility will be a key focal point for investors going forward... Profitability is one reason SMRA stands out from many of last year's "hot" IPOs... Street currently expects firm to earn $0.43 in FY00 and $0.54 in FY01, with a 5-yr growth rate of 23%... Resulting PEGs of 1.52 and 1.20 are very attractive relative to the industry and the market - especially when you consider that street usually underestimates earnings for relatively new companies... Technically, stock also attractive in that SMRA recently crossed back above its 50-day moving average... Stock also testing stubborn resistance at 15, with penetration setting up a near-term run at 20. -- Robert Walberg, Briefing.com "