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To: Dealer who wrote (24697)7/8/2000 12:49:58 PM
From: Dealer  Read Replies (2) | Respond to of 35685
 
Stock picks of the week from Eisenstadt of Value Line
I2 Technologies, SDL, Network Appliances, JDS Uniphase

By Deborah Adamson, CBS.MarketWatch.com
Last Update: 1:50 PM ET Jul 7, 2000 NewsWatch
Latest headlines

LOS ANGELES (CBS.MW) - Unlike Wall Street analysts, investment advisory and money management firm Value Line doesn’t put much stock in earnings projections.

With so many factors to consider, it’s difficult to make accurate earnings forecasts, according to Samuel Eisenstadt, Value Line’s research chairman.

Instead, Value Line looks at actual earnings and other data, which includes company announcements of expected profits and sales - considered more reliable than outside estimates, since figures are coming from the companies themselves.

“We’ve gotten good results without using forecasts,” Eisenstadt said.

Measuring up

Value Line ranks a stock according to timeliness, technical factors and safety. In the timeliness ranking, it uses a computer program to analyze a stock’s long-term price and earnings history, recent price and earnings momentum and earnings surprises. The best stocks, with a 1 or 2 ranking (out of 5), are likely to do better than the market in the next six to 12 months, according to Eisenstadt.

The technical ranking looks at a stock’s price trends, using a mathematical formula to find companies with upward potential in the next three to six months. Safety relates to a stock’s volatility and company fundamentals, such as receivables and other accounting data.

Eisenstadt chose four technology stocks that ranked first in the timeliness and technical categories this week -- although they registered a volatile 3 or 4 for safety.

I2 Technologies


Dallas-based company I2 Technologies (ITWO: news, msgs) provides supply chain management software that integrates a company’s production, sales, customer communication and supplier processes. I2 recently merged with Aspect Development, a business-to-business marketplace software company. Company profile,financialsand analysts' ratings.

SDL Inc.


San Jose, Calif.-based SDL (SDLI: news, msgs) makes optical components used to increase bandwidth or capacity for communications pipelines -- critical for transmitting massive amounts of data over the Internet.

SDL announced in late May that sales and profits for the second quarter would be “well in excess” of Wall Street estimates. Its fiscal 2000 sales are expected to be at least 140 percent higher than last year’s. Company profile,financials and analysts' ratings.

Network Appliance


Network Appliance (NTAP: news, msgs) of Sunnyvale, Calif. makes file servers that store and deliver files over high-traffic networks typically used by Internet service providers. The company’s average three-year sales growth rate stands at 84 percent, while profits rose 64 percent. Company profile,financials and analysts' ratings.

JDS Uniphase


JDS Uniphase (JDSU: news, msgs) is a maker of optical components that carry light signals over fiber optic cables, increasing the capacity for moving data. The San Jose, Calif.-based company just merged with E-Tek Dynamics, which makes components and modules for fiber-optic systems. JDS Uniphase shares have split three times in the last 12 months. Company profile,financials and analysts' ratings.