It's not rocket science, only a balancing act between greed and fear
By emckoba
Senior investment Analyst
Jan 2/ 2000
2000 RRSP/401K Portfolio
Nokia Oj (NOK:NYSE) $US190.00
-A great company, with the fastest time-to-market (TTM) technologies and practices in the telephone handset industry. Will continue to lead in this industry for the foreseeable future.
Lumenon Innovative Lightwave (LUMME:OTCBB) $US25.75 - Sure, this stock used to be 25 cents a few months ago and had a great run to $49, but given the technology they have, we expect more of the same this year as they rollout their first products in Arrayed Waveguides (AWG). Lumenon possesses the Sol-Gel optical chip technology that gives it a significant competitive advantage in pricing over alternative DWDM solutions to bandwidth problems.
Bell Canada Enterprises (BCE:TSE) $131.15 - The market value or capitalization (outstanding shares multiplied by share price) of BCE at Dec 31/199 was $US57.7B which roughly approximates to the total value of Nortel shares held by BCE . The significance of this is that BCE's other assets or holdings [i.e. BCE Emergis ($US4.1B), Bell Canada ($US14B), BCE Mobility, CGI Group, Bell ExpressVu, Aliant Inc, Manitoba Tel, Teleglobe ($US5.8B), Bell Sympatico, Bell Canada International ($1.8B)]are not reflected in the stock price of BCE, making BCE a cheaper way of playing Nortel.
The only challenge facing this company is to address the issue of flagging rates in long distance and local voice, OVER-RELIANCE ON Nortel and how to attract a US portal to gain the necessary content for Bell Sympatico.
JDS Uniphase (JDU:TSE) $234.00 -
The Intel of the fiber optics industry. One of the challenges facing the computing world today relates to bandwidth. Telecom equipment providers aren't able to keep up with demand for fiber optic systems, due to phenomenal growth in broadband demand. Additionally optical component and module manufacturers such as JDS Uniphase are in an enviable position as they supply the needed components to these OEMs.
It's critical for JDS Uniphase to expand to keep up with appetite for its fibre optic products, used by telecommunications equipment manufacturers to build high-speed networks for data traffic. This explains a recent announcement to spend $125-million (US) to add 600,000 square feet to its global manufacturing facilities next year.
Cryptologic Inc (CRY:TSE) $25.90 - This company was included in our 1998 portfolio at $12.30 and gained over 100% to close the year at $25.90. We expect it to double at the minimum over the year 2000. Cryptologic is the leader in online casino software, cash-rich,high margins, profitable internet company with a price/earnings ratio of 10.
The only issue with this company is the attempted legislation in the US Senate, known as the Kyl Bill, to make it illegal for U.S. citizens to place bets on line in most circumstances
Forbes Medi-Technology (FMI:TSE) $10.90 - Has competitive edge in 3 products (phytrol-cholesterol-reducing food additive, androstendione (AD) & androstadienedione (ADD) - steroids; and cadiorex). Functional food negotiations with Norvatis and other third party food companies have slowed and also the letter of intent with Cargill has expired, without a formal contract being signed. This explains the recent price depreciation from $18 to $11.
This should be seen as an opportunity to take a position as prices will pick up again before the end of June 2000 once announcements for a retail food partner and/or a manufacturing contract for AD are/or released. It must be emphasized that before the end of June 2000, the stock price can also fall below the $10.
SCS Solars Computing (SCS:CDNX) $0.80- SCS SOLARS Computing Systems Inc. is the developer and provider of proprietary software solutions that help improve the productivity and profitability of travel vendors and travel retailers worldwide. SCS has signed up seven international air consolidators and travel wholesalers (including Galileo [GLC], Sabre [TSG], WORLDSPAN L.P., Amadeus S.A.) in its industry and currently has a market capitalization of $44M, while TravelByUS (TBU:TSE) has signed up only one major wholesaler and has a market cap of $167M.
The only issue with this company is that one of the senior people was let go and that individual had 800,000 shares at 15¢ and anything north of 15¢ is profit and he could sell that at any time and make money on it. Now the unfortunate situation is that the demand hasn't been there to pick up the supply and this individual is selling his stock across the board
SAMSys Technologies (SMY:MSE) $1.48) - SAMSys holds a patent in the design and supply of Radio Frequency Identification (RFID) hardware solutions for high-volume pallet and reusable container tracking applications in global Logistics Management, Materials Handling and Supply Chain industries. The Company's technology is a proprietary automatic data collection medium of RFID tags and readers which enables the tracking of goods and assets without the need for direct contact or operator intervention, providing unique functional and cost benefits versus other available technologies.
The implementation of RFID in the supply chain industry is likely to involve major contracts and involve several players in order to enhance and compliment existing ID systems. There are a number of giants in the industry who could be potential suitors to invest in &/or partner with SAMSys if the technology looked likely to achieve commercial success. SMY is well positioned and is maintaining a meaningful competitive lead in the logistics industry and aims to "constantly raise the level of functionality and cost effectiveness of the technology.