IPOIsland.com selects New Focus as IPO Pick of the Week

IPOIsland.com selects New Focus as Pick of the Week.

IPOIsland.com the Internet's leading provider of IPO information, research, and analysis, has selected the IPO of New Focus as its Pick of the Week. Every week, IPOIsland.com's market research team votes to select a their top IPO for that week. Others receiving votes included iBeam Broadcasting and Pixelworks. According to IPOIsland.com's Director of Research, "This week's voting was rather bland, with New Focus basically won this one in a walk."
New Focus is a developer of a variety of photonics devices and modules. The company's products are primarily used in optical networks, but also have application in other industries. Overall though the New Focus' primary focus (no pun intended) is that of optical networking. The company's optical networking components include, fiber amplifiers, tunable lasers, WDM (wave division multiplexing) couplers, VCSELs (vertical cavity surface emitting lasers). VCSELs are the guts behind optical networking transmission gear. Key customers include Lucent, Nortel Networks, Alcatel, and others. New Focus' IPO is lead underwritten by Credit Suisse First Boston, followed by Chase H&Q, U.S Bancorp Piper Jaffray, and CIBC World Markets. The deal is expected to price 5 million shares in a range of 14 to 16. Should the deal price at the high of the range New Focus would initially be valued at about 933 million dollars.

IPOIsland gave the deal a Hot Rating signifying a first day premium of somewhere between 50 and 100%. According to the Director of Research "New Focus will continue to benefit from the tremendous demand for components used in optical networking equipment. The optical networking market continues to boom as demand over the long haul Internet backbone continues to intensify. Much of this demand is based around the limitations of electron based networks over the long haul. The companies one major concern lies with the competition which could get stronger should the JDS Uniphase/E-Tek Dynamics combination go through."

To view the New Focus research report, go to http://www.ipoisland.com/new_focus.htm

For full research into New Focus, and all of this week's IPOs visit IPOIsland.com, or its Research Center at http://www.ipoisland.com/research.htm.

The research team can be contacted at iporeports@ipoisland.com.

Note: Any opinions expressed on this site, should not be construed as either investment advice, predications, or indication or guarantee of future results. Nothing on this website, should be construed as advice for buying or selling stocks. Note that the possibility exists, that errors exist within, our information, and we cannot be held liable for those errors. The founders and or employees of this site, may or may not hold a position in any of the stocks mentioned before, after, or during publication of this material.