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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: puborectalis who wrote (111214)	8/5/2000 10:53:33 PM
From: puborectalis	Read Replies (1) \| Respond to of 120523

BKHM.........more press on BKHM - it is a winner by: 42potty993 8/5/00 9:32 am Msg: 378 of 385 audioinvestor.pyxos.com "WHOWEVER SAID THAT THE TECHNOLOGY SECTOR wasn't volatile? Tech stocks continue their wild and volatile gyrations. The Nasdaq was nearing the 4,300 level in mid-July, only to reverse course and trade in the 3,600 area recently. Jesse Soto, Senior Securities Analyst for the Highmark Mutual Funds, thinks the Nasdaq, along with the rest of the tech sector, should see brighter days within the next six months. He especially believes the tech market will experience a relief rally once the Fed decides whether to raise interest rates. "Once that is out in the air I think the market will begin to stabilize," Soto says. One area Soto has been keeping his eye on is fiber optics. Fiber-optic component maker JDS Uniphase has been on a roll acquiring other companies in the optics realm, including E-Tek Dynamics and SDL. "This merger mania has put a lot of upward pressure on companies in the fiber optic space," states Soto. "The mergers in the fiber optic area bring to light how capacity-constrained this segment of the market is. It's an area that is experiencing very high demand as companies try to increase their infrastructure and provide next-generation services. . . Companies such as JDS Uniphase are willing to pay rather large sums to acquire technology. It is testimony that it is a very difficult business to get into with high barriers to entry." One company Soto likes in fiber optics is Bookham Technology (BKHM 58), which manufactures optical components based on SOI (Silicon On Insulator) wafers using traditional semiconductor manufacturing techniques. Soto adds that Bookham is addressing one of the biggest problems in fiber optics right now -- the availability of components. Soto states, "Large volume manufacturing techniques haven't been developed yet in the fiber optic component space. Many of these devices actually involve a lot of steps done by hand. By using traditional semiconductor manufacturing techniques, Bookham is trying to do what Intel did for microprocessors, which is to bring down cost through manufacturing large volumes. . . They're really the only one out there doing this on silicon. Most of its competitors are using a type of glass known as silica." Bookham's high-profile customers include Nortel and E-Tek Dynamics (a division of JDS Uniphase)."......................BARRON'S: Not So Dry Martini: Five Picks And Two Pans From Europe's Top Fund Manager By RICHARD EVANS "Klaus Martini is bullish on Europe. The 43-year-old head of European equities at DWS Investment thinks Continental Europe is returning to growth after years of stagnation, and he believes corporate restructuring there is finally starting to bite." "One of his favorite European growth stocks is the British-based Bookham Technology, which produces specialized microchips and components that help integrate optical and electric circuits. These chips, says Martini, will power the next generation of broadband networks, which combine fiberoptics and traditional coaxial cable lines. These hybrid networks are expected to deliver highspeed Internet access, video on demand, digital television and other services to both consumers and businesses within the next few years. "I believe they have developed better technology than anyone else so far," says Martini. "And I think they will be able to mass-produce components and deliver them relatively cheaply." With the British start-up expected to convert a $21 million loss this year to earnings of $11.8 million next year and $45 million in 2002, Martini thinks Bookham's American depositary receipts, which recently traded at around $60, could go to $82.50 in 12 months and $105 in two years."