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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Ron Bower who wrote (3073)	1/18/1998 9:31:00 PM
From: Jyoti sharma	Respond to of 78659

Ron, Telecom's growth potential as you pointed out is well known All major telecom stock's p/e also reflect that. On fiber, the next major growth area is fiber to homes. Eventually almost all homes will have fiber strands coming to home. This will provide almost infinite bandwidth. On transmission the trend is toward ATM ( Asynchronous transfer mode) and switching equipment will be upgraded to handle it. Mobile is also likely to keep growing. Networking and switching is another major growth area. I also expect long distance domestic and international rates to keep coming down. For investment it's hard to find companies which are truly undervalued. IMO all major equipment makers ie Lucent, Northern Telecom, Siemens, Ericsson, Motorola, Alcatel, NEC and Nokia are fully valued. I think the best opportunity will be in niche players where competitive pressures are likely to be limited. Examples will be ANDW, ADCT, DIGI, GLW, TLAB, GEMS, ECILF. I intend to buy them on any major correction in stock market. Among telecom operators, I feel almost all are well priced. I think big growth in revenue will be amongst the non US carriers. I like HKT, TBR, TDP, PHI and even CHL. Unfortunately non of them are in my buying range at the moment. Ron my strategy with telecom companies have been to buy them on temporary set backs. Example will be TLDCF which dropped a lot recently due to their Asian problems. Short term there is some risk in stock. Long term they should be okay. CWP and FON are fine companies and appear fully valued here. Best wishes, Jyoti