Daily Stock Opinions and Ratings

Opinions

Chris Fernyc Zarlink ZL-T DON'T BUY Apr 25, 2005

Have got themselves in to a real pickle.Their sector has really had a very tough slog. Have been unprofitable. Has always been the could be, would be, should be down the road companies.

Chris Fernyc

Unlock Rating

$1.620

Stock price when the opinion was issued

Telecommunications

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BUY

Earnings forecast to grow 33% to $0.26 by March/11. Should be easily able to pay off their debt in 2 years assuming debt is not converted into common. ROE is forecast at 33%. This summer is the key when you start to see their medical platform that has been 4 years in progress.

PAST TOP PICK

(Top Pick Mar 18/10, Up 4.64%) Still likes it. Thinks summer’11 will be when investors see the true earnings growth in the medical side of the business. Legacy business is trailing off. 17% lift in earnings expected. 10.8 PE, 19% ROE. Nice 4 quarters trailing cash flow. Significant debt but due 2 years from now and cash will cover it.

BUY

Have a nice cash position. Did much better over the last couple of years. Last time they had a lot of cash they went out and overpaid for an acquisition. One would hope they don’t get into that position again.

BUY

Owns and is on his Buy list. Can see it doing a double from here. There will be a management change soon but he doesn’t know who. This will be a big factor as to where the company will go from here.

PAST TOP PICK

(A Top Pick June 18/10. Up 31.11%.)

WEAK BUY

Stock looks really cheap, but the question is why is not moving up more. Track record has been boom-bust, boom-bust, etc. For the last couple of years it has been going well and looks really reasonable. A lot of skepticism in the market.

BUY

About 7.3% of his portfolio. He has done poorly over time. They have a new CEO as of May. Finally decided to pay off the preferred shares. They are also cutting the work force about 5% and it will hit the bottom line for the next couple of quarters.

HOLD

Take over bid now at $3.35. He has owned this company for a number of years. They refused the take-over bid and refuse to negotiate while looking for a white night. If bid comes off the table it will drop like a stone.

COMMENT

Semiconductors. In the process of a turnaround. Will do well. There is a hostile bid by Microsemi (MSCC-Q). Cash flow is positive.

SELL

Takeover offer is in from Microsemi (MSCC-Q) but he understands the management and board are at against this. If you own, consider selling at this price. If the deal falls through, the price will likely fall back to where it was.

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We paraphrase the experts by hand, we watch the shows and write down what we understood from the experts’ comments. We are human and can make mistakes, help us fix any errors. If you see something that you know is not right or if there is a problem with the site, feel free to email us at : hello@stockchase.com.

Chris Fernyc Zarlink ZL-T DON'T BUY Apr 25, 2005

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