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Technology Stocks : DSC Communications -- Ignore unavailable to you. Want to Upgrade?

To: Ben Beale who wrote (3565)	2/11/1998 3:10:00 AM
From: Moe Damghani	Respond to of 4429

Ben, if you look at the one page summary of Value Line's Telecommunications Equipment makers for this Q, you'll see that they mentioned 1997 was not a good year for the telecommunications equipment makers as a whole. They also mentioned that most of the gain in 1996 for this sector was lost in 1997. So, the problem is not just the stock pickers of Fidelity for 97, the whole sector didn't do well. The fact that they owned only a few thousand shares in 97 of DSC and own 7.9M in 98 buds well. Value Line also thinks that DSC and ANDW may do very well this year. Look at the stocks of companies like MOT, PAIR, QCOM and even ANDW, they all ended the year with where they started or gained only a few bucks. Let's hope for the best!

To: Ben Beale who wrote (3565)	2/11/1998 3:30:00 AM
From: Moe Damghani	Read Replies (2) \| Respond to of 4429

Van, this is from S&P, it came out on FEB. 7, 1998! 07-FEB-98Industry: Communications EquipmentSummary: This company manufactures digital switching, transmission, access and private network system products for the telecommunications industry. Recent Price 19.75 52 Wk Range 32.75 - 17.00Yield Nil 12-Mo. P/E 48.2 Quantitative Evaluation: Outlook (1 Lowest - 5 Highest) 5- Fair Value 33.60 Risk HIGH Earn/Div Rank B Technical Evaluation: BEARISH since 12/97 Rel. Strength Rank (1 Lowest - 99 Highest) 11 Insider Activity NA Overview 03-FEB-98 As telecommunications carriers upgrade their networks to offer new services and to fight new competition, DSC should benefit. DIGI has several promising new products, and the company continues to expand its presence in the rapidly growing international market. DIGI divested its Airspan fixed wireless local loop product in January 1998, in order to reduce operating expenses. DIGI also offers a combination of products allowing carriers to relieve congestion on the telephone network caused by increasing Internet traffic. Demand for DIGI digital loop carrier products should continue to be strong as Internet use soars. DIGI is rebounding from a difficult 1996, when the company posted a net loss and revenues declined, due to reduced deliveries of more mature products and to slower network implementation of newer products. Fourth quarter 1997 revenues were up 14% with gross margins continuing to widen. We foresee revenues growing 19% in 1998 and 20% in 1999, with EPS reaching $1.65 by 1999. Valuation 03-FEB-98 The shares have been weak since we raised our rating to accumulate from hold in October. Concerns over a slowdown in U.S. telco spending have so far been unfounded. Future results should benefit from growing demand for DIGI's products, which are positioned in high growth markets. At the end of 1997, DIGI had $900 million in order backlog, which translates into nearly two quarters worth of revenue visibility. With the shares trading at 12 times our 1999 EPS estimate and given the steady growth in digital loop carrier products, we expect the shares to outperform the overall market. Fourth quarter 1997 results include $0.62 per share in acquisition related charges. Key Stock Statistics: S&P EPS Est. 1998, $1.31, P/E on S&P Est. 1998 15.1 - S&P EPS Est. 1999, $1.65.