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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Ken W who wrote (24842)	5/2/2001 3:34:06 PM
From: Sergio H	Read Replies (2) \| Respond to of 29382

Thanks for INSP data. Double digits or bust!!! IFCI - your call has been on the money. I can't argue with that. ADBL - You don't like it? It's a bargain at less than 1.50. Remember how much Yahoo paid? <ggg> Ken, there's nothing to stop this stock from hitting 1.80 at least. Look at the volume on GMGC. NEWP is featured in today's Invest Tools Advisory: INVESTools Tech Advisory, April 30 - May 4, 2001 By John Brobst, Contributing Editor 1. Leading the Fiber-Optic Sector Recovery (NEWP) Newport Corp. (NEWP) enjoyed strong revenue and earnings growth during the fiber-optic sector boom in 1999 and 2000. The firm makes test, measurement and automation systems for the sector. Shares also soared from a split-adjusted $5 in 1999 to a peak of $192 in October 2000. But large telecom carriers cut capital spending, and that put the brakes on revenues and earnings for the firm. Newport's stock dropped 85% in the past six months. Special situations advisor Jonathan Steinberg characterizes the near-term outlook for optical networking firms as "harsh." But longer-term, he sees Newport leading a sector that should see healthy growth over the next five years. Newport stands to gain as carriers upgrade their networks instead of maintaining legacy systems, as well as cutting labor costs through automation. He says today's current fiber shakeout should trough by September 2001, and equipment makers like Newport will be the first to profit once demand recovers. Steinberg says Newport is strong enough to weather the current storm. The firm has $300 million in cash, minimal debt, and a healthy balance sheet. The industry slowdown warns him not to expect more of last year's hypergrowth (net income more than tripled to $27.8 million, EPS rose 204% to $0.85). Even so, he sees Newport growing revenues 55% to $390 million ($0.28 per share) in 2001. He says shares are inexpensive at less than 20x his forward earnings estimate, and he just issued a buy sign. For more on Jonathan Steinberg's advice see "This Month's Recommendation," May 2001, Individual Investor's Special Situations Report. Jonathan Steinberg provides one undervalued stock per month poised for substantial growth and profit.