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Technology Stocks : Wavecom (WVCM) -- Ignore unavailable to you. Want to Upgrade?

To: w0z who wrote (1)	12/1/2002 4:45:56 PM
From: w0z	Read Replies (2) \| Respond to of 14

From Thomas Wiesel's page cited previously: Wavecom (WVCM) BUY 11/25/02 Price: $31.25 Mkt Cap: $470mn 10-Day Avg Volume: 11K Year High: $45.00 Year Low: $23.65 P/E CY02E: 10.4x TEV/Rev CY02E: 0.6x (TEV is Total Economic Value...similar to Price/Sales) P/E CY03E: 9.4x TEV/Rev CY03E: 0.4x Source: FactSet Wavecom shares gained 4.0% last week compared to the 5.6% increase in the wireless comm IC index. While the company recently posted solid revenue growth (26% sequential), inventory issues continue to remain fresh in the investor mindset, in our view. Management cited adjusted customer forecasts as cause for the inventory situation. However, given less visibility into demand trends into 2003, Wavecom management believes that March-quarter revenue could be flat to down. We await increasing customer diversity as a catalyst for the stock and take a more cautious stance ahead of any material customer mix shifts. Additionally, we suspect that the competitive landscape is changing and that traditional Wavecom customers have more options in terms of cellular reference designs and competitive module products. In our view, investor sentiment toward Wavecom could remain cautious until further clarity toward these issues is achieved. However, we believe that weakness today presents an excellent buying opportunity in anticipation of new customer contracts and a ramp of revenue in 1H03.