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

To: Johnathan C. Doe who wrote (433)	7/29/1998 4:30:00 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 659

briefing.com Ortel Corp. (ORTL) 20 +7/8: Wheat First Union maintains "buy" rating, but raises price target on designer and manufacturer of RF signal transmission products; company can benefit from General Instrument's (GIC 26 9/16 -1 7/16) business which accounted for 15% of ORTL's revenues in FY98; raises 12-month price target from $20 to $30 a share, while keeping FY99 EPS estimate at $0.45 and FY00 at $0.90 a share..... General Instrument Corp. (GIC) 26 3/4 -1 1/4: --UPDATE-- DLJ raises earnings estimates on supplier of systems and equipment to the cable industry following strong Q2 results; maintains "buy" rating with $33 a share price target; raises FY98 EPS from $0.76 to $0.77 and FY99 EPS from $0.90 to $0.93 a share..... GENERAL INSTRUMENT CORP. (GIC) 26 9/16 -1 7/16. Wall Street seems to be very enthused about the earnings this supplier of systems and equipment to the cable industry posted last night. However, despite the positive views and increases in earnings estimates, the stock has run into a headwind that is preventing the stock from moving up as investors focus on sales of analog set-top which continued to fall. General Instrument's Q2 results beat Wall Street expectations by four cents and revenues rose 8.5% to $488.5 million from a year-ago. Meanwhile, Q2 sales also increased by 17% on a sequential basis. However, concerns about analog sales and the soft trend in Asia and Latin America markets seems to be distracting investors from the positive report. After all, the company said that shipments of digital set-top boxes rose 40% on a sequentially basis, exceeding the company's projections for the period and year to date. This is an area of growth and one which investors may find more reason to be enthused about. However, as long as international markets remain soft, the outlook for sales from these markets are likely to be less than required to maintain the stock at or above its current 30 times multiple to its projected 1999 earnings.