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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Mark Konrad who wrote (49125)	3/14/2001 6:39:45 PM
From: Rock_nj	Read Replies (1) \| Respond to of 57584

NUFO - New Focus, Inc. I don't know if NUFO has been mentioned on this thread, because I just started following the thread again recently. But, NUFO looks like a promising optical networking stock. It was up 18% today. Check out this article from DJ regarding NUFO: DJ New Focus Up 18%;Co Has No News Wed;Bargain Hunters Seen -- NEW YORK (Dow Jones)--Amid massive selling in technology stocks Wednesday,shares of New Focus Inc. (NUFO) stood out by gaining 20% despite a lack of news. Chief Financial Officer Joe Potts said the company had no news or anticipated announcements but noted that the company's stock has been down "more than others" in the optical networking industry. Similarly, analysts and one major shareholder suggested bargain hunters were buying into the stock. Mark Langley, analyst at Epoch Partners, said that shares of New Focus are currently trading at five times 12-month forward sales, compared with JDS Uniphase Corp. (JDSU), which trades at seven times forward sales and Finisar Corp. (FNSR), which trades at 6.5 times forward sales. The stock has been "slaughtered," said Phillip Lamoreaux, general partner at Lamoreaux Partners L.P., which is a major shareholder of New Focus stock. He sees the company doubling its revenue each of the next two years and believes the company has "more upside potential" than others in the industry. New Focus isn't relying on a broad-based industry recovery, Lamoreaux said, emphasizing that the company sells into growing segments of the industry and is able to introduce new products even in a slowing economy. New Focus will be one the many companies displaying their wares at the upcoming Optical Fiber Communication Conference, which is considered the biggest industry gathering of the year. The gathering, which is organized by the Optical Society of America, kicks off this weekend in Anaheim, California. Potts said that the company will be setting up a booth at the conference. Shares of the company were recently trading at $17.38, up 18.3%, or $2.69, on volume of 5.5 million shares, compared to average volume of 3.8 million. Earlier Wednesday, the shares traded as high as $18.13. Although online chat boards included speculation about a buyout by JDS Uniphase, Lamoreaux said he believes this would be unlikely. Companies generally merge because they are weak, or are seeking a better marketing channel, he said, emphasizing that this is not the case for New Focus. A buyout by another company would not benefit shareholders, he maintained. "I wouldn't want to own Cisco shares, because I can buy all I want," he said as an example. "This is a company that has the opportunity to double and then redouble. It's going to show faster growth than any name it could merge with." Lamoreaux also downplayed filings which revealed a glut of insider selling last month. The filings included sales by Chief Executive Kenneth Westrick, Chief Operating Officer Pignati Nicola plus a handful of vice presidents and two directors. The insiders sold "very modest amounts," Lamoreaux said, or, in the case of major shareholder Dr. Milton Chang, dumped only one-tenth of 1% of his total holdings. Intel and other companies have a pattern of selling a little bit after releasing earnings in order to gain a some liquidity and show that there has been no bias, he said. -By Ellen Sheng, Dow Jones Newswires; 201-938-5176; ellen.sheng@dowjones.com (END) DOW JONES NEWS 03-14-01 03:19 PM- - 03 19 PM EST 03-14-01