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http://www.forbes.com/2003/12/05/cx_ah_1205sf.html?partner=y… Stock Focus Betting On Wi-Fi Arik Hesseldahl, 12.05.03, 8:30 AM ET NEW YORK - If you travel often with a laptop and still connect to the Internet using a dial-up modem, then you`re behind the times. The way to hook up to the Net from the road these days is via Wi-Fi, the increasingly popular wireless Internet connection technology. Wi-Fi technology also makes it possible for home users to share a high-speed Internet connection as well as printers, scanners and files. A growing number of handheld computers also offer Wi-Fi capability. How can investors profit from the Wi-Fi trend? One fairly safe option is Intel (nasdaq: INTC - news - people ). Intel made a $300 million bet in marketing costs alone, on building wireless Internet capabilities into its Centrino chip platform. The firm`s Centrino-based products for notebook computers fueled a year-over-year doubling of mobile chip sales in its most recent quarter. Centrino-based chips are expected to account for more than half of mobile semiconductors that Intel ships in the current quarter. Intel is now betting that integrating Wi-Fi capability into a forthcoming chipset for desktops--which gives them the ability to act as Wi-Fi hotspots--will do the same for the desktop PC business. Shares of Intel trade near their 52-week high and for 29 times estimated 2004 profits. Cisco Systems (nasdaq: CSCO - news - people ), the dominant gearmaker for wired networks is also making a big push into wireless equipment. In June it completed its acquisition of Linksys, a vendor of wired and wireless networking equipment for the home and small business market. Cisco, which is expected to generate revenue of $14.6 billion in 2003 is free of long-term debt and sells for 29 times estimated earnings of 81 cents per share for its fiscal year ending in July 2005. Smaller firms like Netgear (nasdaq: NTGR - news - people ) may find the Wi-Fi business more difficult as bigger companies like Intel and Cisco expand their wireless offerings. Spun off from Nortel Networks (nyse: NT - news - people ) in 2000, Netgear went public July 31, 2003 at $14 per share and peaked at $21 in September. The stock has since fallen back and now trades just above its offering price. Netgear was profitable for the first two quarters of 2003, but it reported a 15 cent per share loss in its most recent quarter on sales of $75.8 million. For 2004, analysts are expecting profits of 52 cents per share. While it is relatively easy to set up a wireless network, it is more difficult to protect client computers from hackers and other evildoers. This is creating new opportunities for companies like Symantec (nyse: SYMC - news - people ), which sells a wide range of security software. At 27 times expected profits for the fiscal year ending in March 2005, Symantec is priced near its historical high. Wild About Wi-Fi Company Price Sales (mil) Market Cap (mil) Fiscal 2003 EPS Estimate Fiscal 2004 EPS Estimate Fiscal 2004 P/E Agere Systems (nyse: AGR.A - news - people ) $ 3.14 $ 2,177 $ 5,163 $ 0.06 $ 0.15 22 Apple Computer (nasdaq: AAPL - news - people ) 21.15 6,207 7,712 0.20 0.40 54 Broadcom (nasdaq: BRCM - news - people ) 35.22 1,083 10,908 0.46 0.72 51 Cisco Systems (nasdaq: CSCO - news - people ) 23.98 18,878 160,848 0.59 0.70 33 Conexant Systems (nasdaq: CNXT - news - people ) 5.54 602 1,490 0.00 0.16 35 GlobeSpanVirata (nasdaq: GSPN - news - people ) 6.36 229 959 0.21 0.33 19 Intel (nasdaq: INTC - news - people ) 33.54 26,764 217,777 0.82 1.18 29 NetGear (nasdaq: NTGR - news - people ) 14.92 237 425 0.34 0.52 28 Netopia (nasdaq: NTPA - news - people ) 15.17 64 309 -0.36 0.32 50 Proxim (nasdaq: PROX - news - people ) 1.56 145 183 -0.13 -0.02 N/A RF Micro Devices (nasdaq: RFMD - news - people ) 10.72 508 2,003 0.19 0.35 32 Symantec (nasdaq: SYMC - news - people ) 33.04 1,407 10,024 1.07 1.19 27 3Com (nasdaq: COMS - news - people ) 7.99 933 2,999 -0.50 -0.20 N/A Prices as of 12/4/03. Sources: FT Interactive Data, Reuters Fundamentals and MarketGuide via FactSet Research Systems |
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| aus der Diskussion: | NetGear(NTGR) |
| Autor (Datum des Eintrages): | panik (05.12.03 14:42:57) |
| Beitrag: | 17 von 27 (ID:11531791) |
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