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 : Optical Communication Products Inc - OCPI -- Ignore unavailable to you. Want to Upgrade?

To: Neil H who wrote (12)	11/1/2000 5:28:50 AM
From: Neil H	Read Replies (1) \| Respond to of 131

The hottest deal of the week may be the anticipated debut of Optical Communication Products (OCPI), which plans to raise $126 million with UBS Warburg. The company drew pick-of-the-week status from IPOfinancial.com and WallStreetCity.com. The Chatsworth, Calif.-based company makes equipment for metropolitan-area networks and high-speed premises networks. Japanese conglomerate Furukawa, which has also backed JDS Uniphase (JDSU), owns a big stake in Optical Communication Products. The company rang up $7 million in profit on $36 million in revenue last year. It's eyeing a $10-to-$12 price range for its 10.5 million shares. "The performance of this offering will depend on sentiment," said Charles Rotblut of WallStreetCity.com. "Given the customer list and earnings growth, we would expect it to generate material gains if the market were bidding up fiber-optic stocks. "However, given the current level of volatility, the stock's first-day performance could be far less than spectacular, if the offering is not postponed." The optical sector took a big hit last week with last week's light-on-the-top-line profit report by Nortel Networks (NT), but things snapped back with a bullish forecast by JDS Uniphase. Despite the fact that there have been about 30 optical-networking IPOs and secondaries this year, IPO investors still appear to be interested in the segment amid industry forecasts for heavy spending on Internet infrastructure. The segment will see a big, $2.9 billion follow-on from Corning (GLW) this week. Corning is also expected to complete a $1.2 billion bond deal. The company selected Goldman Sachs to act as book runner on both.