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Optical/IP

LR Index Up 86% in 2003

The LR Index of telecom equipment stocks is hot on the comeback trail, having climbed 86 percent in 2003.

The Light Reading Index was launched in January 2000 with a starting price of 1,000, climbing to an all-time high of 1,368 in August 2000. By September 2002, it had hit an all-time low of 66.

The Index outperformed the Nasdaq Composite Index, which rose 50 percent in 2003, and it included many of the Nasdaq's top gainers. What helped these stocks? For one, telecom was among the most battered sectors on Wall Street, poised for a rebound. Many of the companies in the LR Index were trading at or near the value of the cash they had on their balance sheets. When the market turned and technology started coming back, investors revisited the most battered of all tech sectors.

The cheapest of the bunch in the Index -- particularly low-priced chip and optical components stocks -- had the biggest percentage gains in 2003. Avanex led the bunch with a 370 percent gain in 2003. Next were Foundry Networks Inc. (Nasdaq: FDRY), with a 235% climb, and Optical Communication Products Inc. (OCPI) (Nasdaq: OCPI), with 234%.

Here’s a list of the top gainers in the LR Index in 2003, in percentage terms:

  1. Avanex Corp. (Nasdaq: AVNX) 370%
  2. Foundry Networks Inc. (Nasdaq: FDRY) 235%
  3. Optical Communication Products Inc. (OCPI) (Nasdaq: OCPI) 234%
  4. MRV Communications Inc. (Nasdaq: MRVC) 213%
  5. PMC-Sierra Inc. (Nasdaq: PMCS) 218%
  6. Corning Inc. (NYSE: GLW) 177%
  7. Harmonic Inc. (Nasdaq: HLIT) 176%
  8. Finisar Corp. (Nasdaq: FNSR) 174%
  9. Alcatel SA (NYSE: ALA; Paris: CGEP:PA) 164%
  10. Corvis Corp. (Nasdaq: CORV) 127%
  11. Juniper Networks Inc. (Nasdaq: JNPR) 122%
Of course, the gains and losses in smaller stocks can be exaggerated in percentage terms. Among stocks with prices over $10, here were the big gainers:

  1. Foundry 235%
  2. PMCS 218%
  3. Corning 177%
  4. Alcatel 164%
  5. Veeco Instruments Inc. (Nasdaq: VECO) 128%
  6. Juniper 122%
  7. Siemens AG (NYSE: SI; Frankfurt: SIE) 83%
  8. Cisco Systems Inc. (Nasdaq: CSCO)70%
  9. Agilent Technologies Inc. (NYSE: A) 52%
Equipment giants Nortel Networks Corp. (NYSE/Toronto: NT) and Lucent Technologies Inc. (NYSE: LU) also had good years, with share price gains of 114 percent and 88 percent, respectively.

What about the laggards? Only three stocks actually went down: Redback Networks Inc. (Nasdaq: RBAK), Riverstone Networks Inc., and Digital Lightwave Inc. (Nasdaq: DIGL). Riverstone and Redback were both booted from the Index. Riverstone has been delisted from Nasdaq and currently trades in the pink sheets. Redback has been reorganized. Digital Lightwave, trading at $0.95 after falling 36 percent in 2003, may not be on the LR Index much longer.

A new addition to the LR Index in 2003 was Network Equipment Technologies Inc. (net.com) (NYSE: NWK), which replaced Redback.

In the new year, the LR Index is off to a good start -- up 7 percent in 2004.

— R. Scott Raynovich, US Editor, Light Reading

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BobbyMax 12/5/2012 | 2:44:37 AM
re: LR Index Up 86% in 2003 In any stock market reporting some reference point is needed. The year in my view is 1999. All stock values need to be described what did the investors pay in 1999. For example, the Lucent stocks were trading at $75 per share and now thay are down to $3.27 per share. A lot of investment was made in 1999 and the investors have lost their fortunes.

It should also be mentioned that forein investors have lost $8.3 trillions.
duffeck 12/5/2012 | 2:44:34 AM
re: LR Index Up 86% in 2003 How come the numbers in the table don't agree with the numbers in the preceding paragraph?

"The cheapest of the bunch in the Index -- low-priced chip and optical components stocks -- had the biggest percentage gains in 2003. Avanex led the bunch with a 443 percent gain in 2003. Next were MRVC, with a 278 percent climb, and PMCS, at 267 percent.


HereGÇÖs a list of the top gainers in the LR Index in 2003, in percentage terms:

Avanex Corp. (Nasdaq: AVNX - message board) 370%
Foundry Networks Inc. (Nasdaq: FDRY - message board) 235%
Optical Communication Products Inc. (OCPI) (Nasdaq: OCPI - message board) 234%
MRV Communications Inc. (Nasdaq: MRVC - message board) 213%
PMC-Sierra Inc. (Nasdaq: PMCS - message board) 218%"

duffeck 12/5/2012 | 2:44:32 AM
re: LR Index Up 86% in 2003 "Of course, the gains and losses in smaller stocks can be exaggerated because a stock going from $1 to $2 is up 100 percent."

A 100 percent gain is a 100 percent gain, period whether the price is $1 or $100 per share. Either way a $100,000 investment goes to $200,000.
Scott Raynovich 12/5/2012 | 2:44:26 AM
re: LR Index Up 86% in 2003 Just pointing out that a $1-$2 stock has exaggerated moves, *in percentage terms*.
Scott Raynovich 12/5/2012 | 2:44:26 AM
re: LR Index Up 86% in 2003 We fixed this... thanks for pointing this out.

The higher numbers included the first week of January 2004. We recalculated as annual 2003 totals but missed changing some of the numbers at the top.
duffeck 12/5/2012 | 2:44:23 AM
re: LR Index Up 86% in 2003 opps I mean Scott.
duffeck 12/5/2012 | 2:44:23 AM
re: LR Index Up 86% in 2003 "Just pointing out that a $1-$2 stock has exaggerated moves, *in percentage terms*

Sorry Ray I still fail to see your point. In no way is this an exaggeration. Like I said whether the stock sells for $1 or $100 a share with a 100 percent move you just doubled your investment. Stating this another way a $1 move for a $1 stock is equivalent to a $100 move for a $100 stock. Both are BIG moves. Sorry for belaboring this point this is a common misperception I would not expect Lightreading to advance.
jgris136 12/5/2012 | 2:44:19 AM
re: LR Index Up 86% in 2003 Look this is not that difficult: LR it is not exaggerated movement b/c as duffeck states 100% is 100%. The point should be it's much less probable and much more difficult for a stock to move 100 points to realize the 100% increase vs a stock moving 1 point to realize a 100% increase....phew guys I thought this was a techical sight, maybe too much time at works station instead performing basic math.


"Just pointing out that a $1-$2 stock has exaggerated moves, *in percentage terms*

Sorry Ray I still fail to see your point. In no way is this an exaggeration. Like I said whether the stock sells for $1 or $100 a share with a 100 percent move you just doubled your investment. Stating this another way a $1 move for a $1 stock is equivalent to a $100 move for a $100 stock. Both are BIG moves. Sorry for belaboring this point this is a common misperception I would not expect Lightreading to advance.
salessnake 12/5/2012 | 2:44:07 AM
re: LR Index Up 86% in 2003 And just what are your "facts" that it is easier (more probable) for a $1 stock to go to $2 then a $100 stock to go to $200?

I think that was duffeck's point.

Not a math-wiz, just a slimy salesguy.
Salesnake

duffeck 12/5/2012 | 2:44:04 AM
re: LR Index Up 86% in 2003 <<we fixed="" for="" out.="" pointing="" thanks="" this="" this...="">>

Your welcome Scott but after your quick and easy fix the paragraph still conflicts with the table. I'll fix it for you.

"The cheapest of the bunch in the Index -- low-priced chip and optical components stocks -- had the biggest percentage gains in 2003. Avanex led the bunch with a 370 percent gain in 2003. Next were Foundry Networks, with a 235 percent climb, and OCPI, at 234 percent."

Glad to help.




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