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It's par for the course when
Toby Smith uncovers an exciting "wave" or emerging trend,
as you will hear at the charismatic advisor's his workshops or panels held in Las Vegas. A recent stock pick, however, is involved in "four hot
growth waves at once."
"In our ChangeWave Alliance research from
the past few months, it has been ultra clear that we should expect to see very
strong secular sales growth in optical networking to the home. Our Alliance
research has also shown strong findings in solar energy, WiMAX, and LED
white-light growth. What we love about EMCORE (EMKR NASDAQ) is that it has significant intellectual property, patents and
products in all four of these areas.
"In fiber optics, EMCORE provides key
components for delivering video, voice, and data over copper, hybrid fiber/coax,
fiber, satellite and wireless networks. Its solutions include optical components
and subsystems for fiber-to-the-premise, cable TV, and high-speed data and
telecommunications networks. EMCORE transformed the cable industry back in 1987
with the first linear fiber-optic solution for transmitting video signals over
fiber-optic cable, and they continue to have a role in the industry's success
today.
"Its photovoltaics segment provides solar
cells, solar panels and other key components to the high-end solar energy world.
EMCORE currently has a subcontract with the Defense Research Projects Agency
(DARPA) Very High Efficiency Solar Cell (VHSEC) program to more than double the
efficiency of terrestrial solar cells within the next four years. The University
of Delaware, the prime contractor for the program, selected EMCORE's
photovoltaic division to develop advanced solar cells for Phase I of the
program.
"Through its 49% joint venture with
General Electric, EMCORE plays a vital role in providing next-generation,
high-brightness LED products and solutions. We are doing well with Cree in the
white-light LED world, and EMCORE gives us another chip in this transformation.
The venture combined EMCORE's semiconductor experience with GE Lighting's name
recognition, marketing and distribution capabilities.
"The company also produces key components
for WiMAX and Wi-Fi Internet access, along with 3G mobile handsets and PDA
devices. Overall, EMCORE is so well positioned in four of our favorite
ChangeWaves that we believe its sales and profit picture is set to explode. And
on top of all the sales growth coming from their new products in optical
components, WiMAX, solar and FTTP, LED sales should start kicking in during 2008
in a big way. The stock looks like the best- positioned multi-Wave company I
have ever seen."
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