The RF to Light 100 rose 0.4% last week, YTD + 15% at 2477. Nasdaq rose 0.6% to 2460. Price of Zhone Technologies share catapulted 41% despite worsening balance sheet in 3Q (non cash expenditures). Insiders have been buying. Zhone's revenues (ttm) are up 33%. Quarterly financials of almost all 100 corporations are now recorded: 56 are in good & excellent financial health, 48 are improving their financial strength, 60 show revenue increases (down from 70 midyear)and 78 are profitable. All in all, strong corporate performance continued in 3Q. However, revenue increases slowed down and we may start to see the impact on the bottom line in 4Q06 - together with eroding stock prices. Caution is advised as this year's market correction is almost over (25 points away from 2502 peak).
PIS (personal investment system): Share prices of Edo, Exar, HEI, Maxim and Verizon are all within 30% of their 5 year low. See attached spreadsheets for more financial details & value comparison.
In the News: The dollar plunged about 2% against the Euro, YTD down more than 10%. Apart from interest rate differentials, there was also increased speculation of diversification of foreign exchange reserves held by central banks. This month marks the current economic expansion's 5th birthday.
Market oversold indicator : up to 75%
Market overbought indicator: up to 59%
New Highs: ANAD, BA, ELMG, ERIC, IBM, IFX, MSFT, ROG, TWX
New Lows : none
Top 5:
Last week: Zhone (41%), Sirenza (11%), MRV (8%), Amkor (7%), Andrew (6%)
YTD : Broadwing (145%), Sirenza (98%), Finisar (92%), Rogers (87%), Amkor (84%).
Bottom 5:
Last week: Cree (-5%), Adtran (-5%), Sanmina (-3%), Maxim (-3%), Spectrum (-3%)
YTD : Hei (-59%), Powerwave (-49%), Vitesse (-38%), Zhone (-35%), ADC (-35%)
by Sectors:
Space & Defense : 0%, YTD +19%
Communic. Services: -1%, YTD +31%
Network Systems : +1%, YTD - 1%
RF Semiconductors : +1%, YTD +11%
RF Components : 0%, YTD +17%
F/O Components : +2%, YTD +21%
Miscell. : +1%, YTD +16%
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RF to Light 100 : 0%, YTD +15%