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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: chenys who wrote (18870)	7/8/1998 6:42:00 PM
From: Mang Cheng	Respond to of 45548

"Bel Fuse: Future Rides on Networking, DSL" Jul 08, 1998 Bel Fuse (Nasdaq:BELF - news) isn't a household name, even among high-tech investors. Nonetheless, this relatively obscure manufacturer of electronic products is plugged into several hot areas of the tech sector like networking and DSL telecom equipment. Among other things, Bel Fuse makes tiny magnetic components for computer networking equipment and is the primary supplier to 3Com (Nasdaq:COMS - news) . After quadrupling in two years to $34.75, the stock has slumped back to $21 amid worries that Local Area Network (LAN) market growth is slowing. The stock is trading at a Price/Earnings ratio of just 10.3 using trailing twelve-month earnings. The strong growth in earnings last year and in the first quarter of 1998 may be tough to replicate in coming quarters, though. The company's newfound dependance on the LAN market is giving investors cause for concern, as it accounted for nearly 60% of revenues last year. With $73.5 million in sales last year, Bel is a niche player in the computer networking market, but magnetic components are estimated to represent a $400 million market worldwide. The explosive growth of networking (Internet access, corporate networks, etc) and Bel's close relationship with 3Com have it dialed into a generally strong industry. The 49-year old company also makes miniature and micro fuses, electrical converters and hybrid circuits. Bel's products are used in telecommunications, automotive and consumer electronics applications. The company makes customized circuit products, and earlier this year Bel unveiled a line of standardized products for the telecom industry based on its experience with DSL (digital subscriber lines), which is an up-and-coming high speed data transfer technology that phone and Internet communications companies are aggressively rolling out. On the automotive front, Bel is working with Osram-Sylvania on high-intensity discharge headlights and neon brake lighting systems. Even though its market capitalization has risen past the $100 million mark, Bel Fuse is still a tiny company in the eyes of Wall Street and institutional investors. There is only one brokerage firm covering the stock and that analyst projects earnings of $2.01 for 1998, a 17% increase from last year. The company has no debt and has averaged a Return on Equity of over 17% for the past five years. Book value is nearly $15/share including cash of $6.55/share. From an investor standpoint, the toughest hurdle may be showing up on Wall Street's radar screen to attract the big investors. Bel Fuse isn't one of those glamour companies like the Internet stocks, yet it is plugged into several hot areas of the tech sector that should support solid growth. It seems Bel will need that growth if it is to ever catch the attention of the institutional crowd. Bel Fuse is scheduled to report second quarter earnings on July 23. fnews.yahoo.com Mang (What explosive growth they are talking about ??? I don't see any explosive growth !)