Uniphase: An Even Hotter Phaseby
Uniphase (UNPH) has been one hot stock this year. The maker of laser components and high-powered fiber-optic telecom transmitters started '96 at 16 and is now at 54, up 225%. No way it can keep soaring, right? Investment manager Phil Lamoreaux of Lamoreaux Partners in Sausalito, Calif., is convinced that the stock will still double in 12 to 18 months.
His faith is based on the company's torrid growth in its sizzling industry. Lamoreaux, who specializes in small-cap growth stocks, figures Uniphase will make $1.05 a share in the year ending June 30, 1997, on sales of $116 million, and $1.55 on $168 million in fiscal 1998. It made 67 cents on $69 million last year.
Lamoreaux has a good record so far this year. As of Nov. 13, his portfolio had risen 41%, compared with 22% for the Dow Jones industrial average and 15% for Standard & Poor's index of 600 small-cap stocks.
Lamoreaux notes that Uniphase's growing list of satisfied customers includes Northern Telecom, General Instrument, and Scientific-Atlanta. At a September conference of Montgomery Securities, director of research John Skeen said Uniphase was his best single stock idea. The stock was then at 44. Adds Lamoreaux: "Uniphase will be a major technology company, [and] it is still in its early growth cycle."