Wells Fargo Van Kasper Initiating Coverage on Spectrian Corporation with Underperform Rating

Apr 10, 2001, 01:00 ET from Wells Fargo Van Kasper

    SAN FRANCISCO, April 10 /PRNewswire/ -- J.P. Mark, Telecommunications
 Analyst at Wells Fargo Van Kasper, is initiating coverage on the shares of
 Spectrian Corporation (Nasdaq: SPCT; $9.92) with an Underperform rating.
     Below are quotations from Mr. Mark's research report:
 
     -- We are initiating coverage of Spectrian Corporation with an
        Underperform rating.
     -- Spectrian should benefit from the increasing move toward outsource
        production by major infrastructure providers such as Nokia, Ericsson,
        and Nortel.
     -- We are hopeful that the increasing trend toward outsourcing could
        benefit Spectrian in the future. However, we believe that Spectrian
        would have to win that business away from Powerwave, a feat that it has
        not been able to accomplish to date.
     -- Spectrian has made great strides with network operators and OEMs in the
        CDMA power amplifier market. However, it has a very limited offering of
        GSM-based products. As operators move to 3G-either CDMA2000 or
        W-CDMA-Spectrian could be hurt by its lack of relationships with the
        world's largest wireless carriers, who now operate predominantly
        GSM-based network systems and are moving to 3G networks based on
        W-CDMA.
     -- As the quarter closes, Nortel's announcement that its 3G business will
        be pushed out 3-6 months should, in our opinion, negatively affect
        Spectrian. We believe that Spectrian could win new business later in
        CY01 to make up for the shortfall, but we see some short-term
        volatility in the price of Spectrian shares. We also believe that
        Spectrian's difficulty in turning a profit is a mark against it. Until
        we see consistent profits and continued order strength from OEMs, we
        expect Spectrian shares to trade flat to lower.
     -- Spectrian shares currently trade at approximately 99.2x (a premium to
        the industry average of 41.0x) our CY01 earnings estimate of $0.10. On
        a P/E/G basis, Spectrian currently trades at 0.54x-a premium to
        Powerwave's P/E/G of 0.45x.
     -- We do not have great confidence in our estimate for the company's
        performance going forward. In our opinion, Spectrian shares are
        currently overvalued relative to Powerwave, and we believe that,
        without a near-term positive catalyst, they could begin to trade below
        book value.
 
     Wells Fargo Van Kasper makes a market in the shares of Spectrian
 Corporation.
     Wells Fargo Van Kasper is a private brokerage and investment banking firm.
 Since its founding in 1978 as Van Kasper & Company, the firm has been
 providing exceptional services and original investment advice to a select
 group of investors and businesses. The firm's offices are located in Fresno,
 Los Angeles, Newport Beach, Rancho Bernardo, San Diego, San Francisco,
 San Jose, and Walnut Creek, California, as well as Phoenix, Arizona, Portland,
 Oregon, and Salt Lake City, Utah.
     Investments made through Wells Fargo Van Kasper:  (1) are not insured by
 the FDIC; (2) are not deposits or other obligations of, or guaranteed by,
 Wells Fargo Van Kasper, Wells Fargo & Company or any of its affiliates; (3)
 are not guaranteed by any Federal governmental agency (excluding U.S.
 Government and federal agency securities); and (4) are subject to investment
 risks, including possible loss of principal amount invested.
     The study on these pages is not a complete analysis of every material fact
 regarding any company, industry or security. The opinions expressed herein
 reflect the judgment of the author at this date and are subject to change
 without notice. Facts have been obtained from sources considered reliable, but
 are not guaranteed. Wells Fargo Van Kasper, its directors and employees and
 their families may have a position in the securities of the companies
 described herein, and may make purchases or sales while this report is in
 circulation. Additional information is available upon request.
     Wells Fargo Van Kasper is a member of the National Association of
 Securities Dealers, CRD number 7665.
 
 

SOURCE Wells Fargo Van Kasper
    SAN FRANCISCO, April 10 /PRNewswire/ -- J.P. Mark, Telecommunications
 Analyst at Wells Fargo Van Kasper, is initiating coverage on the shares of
 Spectrian Corporation (Nasdaq: SPCT; $9.92) with an Underperform rating.
     Below are quotations from Mr. Mark's research report:
 
     -- We are initiating coverage of Spectrian Corporation with an
        Underperform rating.
     -- Spectrian should benefit from the increasing move toward outsource
        production by major infrastructure providers such as Nokia, Ericsson,
        and Nortel.
     -- We are hopeful that the increasing trend toward outsourcing could
        benefit Spectrian in the future. However, we believe that Spectrian
        would have to win that business away from Powerwave, a feat that it has
        not been able to accomplish to date.
     -- Spectrian has made great strides with network operators and OEMs in the
        CDMA power amplifier market. However, it has a very limited offering of
        GSM-based products. As operators move to 3G-either CDMA2000 or
        W-CDMA-Spectrian could be hurt by its lack of relationships with the
        world's largest wireless carriers, who now operate predominantly
        GSM-based network systems and are moving to 3G networks based on
        W-CDMA.
     -- As the quarter closes, Nortel's announcement that its 3G business will
        be pushed out 3-6 months should, in our opinion, negatively affect
        Spectrian. We believe that Spectrian could win new business later in
        CY01 to make up for the shortfall, but we see some short-term
        volatility in the price of Spectrian shares. We also believe that
        Spectrian's difficulty in turning a profit is a mark against it. Until
        we see consistent profits and continued order strength from OEMs, we
        expect Spectrian shares to trade flat to lower.
     -- Spectrian shares currently trade at approximately 99.2x (a premium to
        the industry average of 41.0x) our CY01 earnings estimate of $0.10. On
        a P/E/G basis, Spectrian currently trades at 0.54x-a premium to
        Powerwave's P/E/G of 0.45x.
     -- We do not have great confidence in our estimate for the company's
        performance going forward. In our opinion, Spectrian shares are
        currently overvalued relative to Powerwave, and we believe that,
        without a near-term positive catalyst, they could begin to trade below
        book value.
 
     Wells Fargo Van Kasper makes a market in the shares of Spectrian
 Corporation.
     Wells Fargo Van Kasper is a private brokerage and investment banking firm.
 Since its founding in 1978 as Van Kasper & Company, the firm has been
 providing exceptional services and original investment advice to a select
 group of investors and businesses. The firm's offices are located in Fresno,
 Los Angeles, Newport Beach, Rancho Bernardo, San Diego, San Francisco,
 San Jose, and Walnut Creek, California, as well as Phoenix, Arizona, Portland,
 Oregon, and Salt Lake City, Utah.
     Investments made through Wells Fargo Van Kasper:  (1) are not insured by
 the FDIC; (2) are not deposits or other obligations of, or guaranteed by,
 Wells Fargo Van Kasper, Wells Fargo & Company or any of its affiliates; (3)
 are not guaranteed by any Federal governmental agency (excluding U.S.
 Government and federal agency securities); and (4) are subject to investment
 risks, including possible loss of principal amount invested.
     The study on these pages is not a complete analysis of every material fact
 regarding any company, industry or security. The opinions expressed herein
 reflect the judgment of the author at this date and are subject to change
 without notice. Facts have been obtained from sources considered reliable, but
 are not guaranteed. Wells Fargo Van Kasper, its directors and employees and
 their families may have a position in the securities of the companies
 described herein, and may make purchases or sales while this report is in
 circulation. Additional information is available upon request.
     Wells Fargo Van Kasper is a member of the National Association of
 Securities Dealers, CRD number 7665.
 
 SOURCE  Wells Fargo Van Kasper