SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks
Superior Telecom (NYSE: SUT)
An SI Board Since February 1997
Posts SubjectMarks Bans Symbol
41 1 0 SUT
Emcee:  Cynic 2005 Type:  Unmoderated
Superior Telecom (NYSE: SUT), was recently spun-off from its parent company, Alpine Group(BYSE: AGI) which still controls 50.1% of SUT. From a press release the profile reads as follows:

Superior TeleCom Inc. is a leading manufacturer and supplier of telecommunications cable and wire products to Regional Bell Operating Companies, independent telephone companies, distributors and systems integrators. It also develops and manufactures voice and data multiplexers and other electronics and signal processing components and systems.

Main bread and butter for SUT is copper based cables. Despite the fact that fiber and wireless are the major trend setters for the basic infrastructure equipment of the telcos of the 90's, apparently there is still growth for plain old copper wire. Superior grew at 12% in the most recent quarter in which the company earned $7.53 mil (0.58/share) on revenues of $122.9 mil. With over $450 mil in annualized revenue, the company is currently valued at ($24/share) less than $290 mil and a PE less than 11 which is close to the growth rate. Does this constitute a value play in the booming telecom industry? The industry is expected to spend a lot of money in upgrading the infrastructure due to the fast increasing competition, thanks to the telecom deregulation law of 1996!

Based on my limited knowledge of this company and the industry, I am rather reluctant to call it a growth stock. But I would definitely call it a value play. Current valuation of the telecom equipment stocks is about 26 times trailing earnings. With a french curve projection of the sales and profits, or even with the status-quo, I expect the stock price to be in the mid 40's in a year. That is at a conservative PE of 17, which is still a discount from the industry average.

One more positive note is that Jeff Vinik's hedge fund owns a 6% stake in the company which they bought at prices ranging from $17-$22! The stock has a little over 12 mil shares outstanding and the float is about 6 mil shares. Perhaps even better value play is the parent company, Alpine Group (AGI) which still owns 50.1% of SUT.

Any one has any opinion on this stock or the industry? All comments are welcome.

Good luck!
-Mohan
Previous 25 | Next 25 | View Recent | Post Message
Go to reply# or date (mm/dd/yy):
ReplyMessage PreviewFromRecsPosted
41 Poised for near-term upside move? Looks like some recent strong call option puOrlando Stevenson-11/30/1999
40 I would think this stock is a candidate for a price reduction based on tax-sellKurt A. Altmann-11/28/1999
39 Hi Orlando, I did get out of SUT last year when it started falling back to cloRon Kline-11/13/1999
38 Ron, The recent break out attracted my attention and I picked up 500 shares @ Orlando Stevenson-11/7/1999
37 Talk about getting back to you in 7 months. Are you still around with SUT. I boRon Kline-10/29/1998
36 Ron, I bought SUT Friday. The stock doesn't have many analysts following itDarth Trader-3/1/1998
35 No I'm not holding SUT anymore. When we had the crash and such last OctobeRon Kline-3/1/1998
34 Darth..... I am not a holder of SUT but have been a long term holder of Alpine alan james geik-3/1/1998
33 Still holding SUT? Trading at new highs. Darth Trader-2/28/1998
32 thanks for the tip. I was surprised that it has gone down so much. I bought anRon Kline-9/9/1997
31 I don't own any SUT right now. Just watching ... I am currently in BOST (BoStefan Gruenwald-9/8/1997
30 Thanks for the stock tips. I'll look them up and investigate. Do you own anRon Kline-9/7/1997
29 Dear Ron: I just found two other stocks that may fit your criteria: MSON and EStefan Gruenwald-9/6/1997
28 Stefan, I agree and I'm holding my shares also. I think there is little doRon Kline-9/3/1997
27 Dear Michael: I believe you sold too early. Bought some today after the 400+ mStefan Gruenwald-9/3/1997
26 Av, I sold an extended SUT on July 14 @32 dollars and shortly there after SUT rMikeinSanDiego-8/29/1997
25 Mike, may I ask, why did you close your position? IMO this has long way (up) toav ram-8/27/1997
24 All- I closed out my position in SUT today. Good luck, trade on. Mike in San DiMikeinSanDiego-7/14/1997
23 Vinik buys large block(70,000 shares) on 6/23, I seen the trade that day but I MikeinSanDiego-6/26/1997
22 Another telecom stock to investigate. chebucto.ns.caSpeirs, Robert-6/13/1997
21 Earnings $2.27 for the year. Thats a P.E. of 11.8 @ $27.00. Industry average haMikeinSanDiego-6/9/1997
20 Stock looks cheap, in the light that it should earn over $2 for it current fjerry cooper-5/19/1997
19 100,000 share trade went by today and SUT reversed. Today's action took outMikeinSanDiego-5/16/1997
18 I agree. I think SUT will move up soon in anticipation of a strong earnings rejerry cooper-4/17/1997
17 Jerry, Two more large blocks today, 0ne 20,000 share block and one 12,000 shareMikeinSanDiego-4/14/1997
Previous 25 | Next 25 | View Recent | Post Message
Go to reply# or date (mm/dd/yy):