Focus Stock of the Month
Once a month we will provide a free analysis of a company from our Amateur Investor Index Top 50 which we feel is a stock to watch.
Our selection for June is SDL INC Corporation (SDLI).
Fundamentals:
|
SDLI |
2Q 99/98 | 3Q 99/98 | 4Q 99/98 | 1Q 00/99 |
|
% Increase in Quarterly Sales Growth |
+52% | +76% | +92% | +92% |
|
% Increase in Quarterly Earnings Growth |
+350% | +175% | +220% | +175% |
| % Increase in Quarterly Net Profit Margins | 7.4% | 15.6% | 20.4% | 19.7% |
Earnings Outlook:
Estimates for the next two quarters and next two years:
3Q 00/99 |
4Q 00/99 | 2000/1999 | 2001/2000 |
| E .23/.09 | E .24/.11 | E 1.01/.44 | E 1.37/E 1.01 |
| +151% | +120% | +132% | +36% |
SDLI is a provider of solutions for optical communications and related markets. The Company's products power the transmission of data, voice, and Internet information over fiber optic networks to meet the needs of telecommunication, dense wavelength division multiplexing (DWDM), cable television and metro communications applications. The Company's solutions enable customers to meet the need for increasing bandwidth by expanding their fiber optic communication networks more quickly and efficiently than by using conventional electronic and optical technologies. The Company derives revenue from two principal markets: fiber optic communications and industrial laser products.
Other Ratings as of 5/30/00 include:
EPS: 96 RS: 99 ACC/DIST: B, GROUP
STRENGTH: 89, Shares
Outstanding: 63.6M,
Float Shares 70.7M, Institutional Ownership 82% and Insider Ownership
12%. The average daily volume is
around 3.5M shares. Next Earnings Report: 7/27
SDLI has continued to rebound after pulling back to around its 200 Day Exponential Moving Average (EMA) back in April. SDLI has held up well despite the Bear Market and is showing signs of strong leadership in the Semiconductor Group. It has almost completed forming a Cup over the past three months and recently broke above its 50 Day EMA on big volume. SDLI now needs to develop a Handle in the upcoming weeks with a decrease in volume to form a favorable Cup and Handle pattern. If the Semiconductor Group becomes favorable again with the Institutional Community SDLI will certainly be a stock to watch over the next several weeks.
***The Focus Stock of the Month is our opinion of a company to watch in the future. This doesn't mean it's a recommendation to buy the stock.***
