Kulicke & Soffa, Intel, Medical Resources, Peregrine Systems - TheStreet

Kulicke & Soffa, Intel, Medical Resources, Peregrine Systems

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A selection of some of the most intriguing tech stock ideas on the Web. The items presented do not represent the views of

TheStreet.com

; rather, the collection is offered as a service to our members who may be scanning the Web for stock-related information.

Kulicke & Soffa

Stephen Leeb

(10/20)

Stephen Leeb, editor of

The Big Picture

newsletter, says investors who are expecting a recession are wrong. Thus, he says,

Kulicke & Soffa

(KLIC) - Get Report

, the world's largest maker of semiconductor assembly equipment, is "one fantastic bargain" because it's being discounted as a cyclical stock.

The semiconductor sector, one of the first to suffer from the Asian economic crisis, is turning around, he says, and Kulicke offers a compelling bargain. The company sells for just 9.5 times $1.78-per-share earnings estimates for 2000. And growth over the next five years is anticipated at 20% annually on average, says Leeb. The growth rate could increase if the Japanese economy recovers, he adds.

The stock is trading at just under 17, down more than 50% from its 52-week high. Leeb recommends buying under 22.

More information can be found at:

www.tfc.com

Intel

Bill Schaff

(10/19)

Is

Intel

(INTC) - Get Report

the

New York Yankees

of the microchip game? Bill Schaff, co-founder of

Bay Isle Financial

in San Francisco, says that like the world champs, Intel is a dominant force that affects the fortunes of its entire industry

Intel's stock has done well during the past three months, says Schaff, despite the huge selloff of technology stocks. Last week, the Santa Clara, Calif., company reported solid third-quarter revenue and earnings. Wall Street applauded while the stock gave the

Nasdaq

some much-needed bounce.

Why has Intel escaped the hangman's noose? According to Schaff, it's the breadth and depth of its mammoth product line. "Intel's stock has fared better than most because demand for its low-end Celeron chips and its high-end Xeon chips for the server and workstation markets has been stronger than expected," he says. "One reason is Intel's customers are building up their inventories after setting unsustainable low levels of components in the second quarter."

Schaff adds that given the current outlook, Intel is likely to show strong unit growth through year-end. Its gross margin will remain around the current level of 53%. Operating margins should stabilize at around 32% -- still down from 37% last year.

More information can be found at:

www.techweb.com

Medical Resources

Robert Metz

(10/20)

Medical Resources

(MRII)

is one of the leading operators of freestanding outpatient diagnostic imaging centers. Business has been good, but the company's finances have been troubled. Stock columnist Robert Metz examines the company as a possible turnaround story.

For the six months ended June 30, the company suffered net losses before discontinued operations of $7.2 million vs. an income of $6 million in the year-ago period. Acquisitions and an offset related to the issuance of warrants were to blame. Because of a problem with collections, the company "seemed to be skirting insolvency," says Metz. And because of these problems, Medical Resources has been unfairly lumped in with other health-care companies that have been accused of cooking their books.

A new management team is "putting it together," says Metz, relying on research from Warren Isabelle of

Ironwood Capital Management

. The new team has been increasing cash flow while eliminating noncore assets. Isabelle says the company can be a "nice stock market story" in a few years.

More information can be found at:

www.talks.com

Peregrine Systems

Standard & Poor's

(10/20)

Peregrine Systems

(PRGN)

, maker of enterprise infrastructure management software, is

Standard & Poor's

Stock of the Week this week for the second time in four months.

The company's products address a broad set of issues across the corporate enterprise, offering an advantage over competitors' more narrowly focused offerings. Its SERVICECENTER product suite, for example, consists of seven applications, including problem management, problem resolution, change management, inventory/configuration management, request management, work management and service-level agreements. Strong growth in software license revenue indicates increasing acceptance of Peregrine's products in the marketplace.

S&P reports consensus earnings estimates are for $0.78 in 1999, rising to $1.13 in 2000. "P/E on the fiscal 2000 estimate is 39," says S&P. "The company's five-year estimated growth rate is 42%. The stock recently traded above its 50 and 150 day moving averages. A breakout to an all-time high on heavy volume is a positive."

More information can be found at:

www.businessweek.com