TODAY: Telecom equipment companies, long given up for dead, are
enjoying a recommendation renaissance, and one formerly dead DSL
provider, Covad (COVD), is back with a vengeance. The question,
says frequent contributor Dave Sterman, is whether it can ever
turn a profit.

Our top 10 most recommended list has a couple of newcomers, and
Morgan Stanley discusses the key investment strengths and risks
of Motorola (MOT), in a report which you can get for free as a
Multex Investor member by registering for the firm's free
research trial. See details below.

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Below
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Investment ideas
Broker reports
Top 10
Free and sponsored reports

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Investment ideas
-----------------------------------------

1. Upward revisions: Analysts see brighter earnings picture for three equipment companies
In an uncertain market, analysts seem sure about the earnings potential of these companies

by John Filar Atwood, equity research columnist

The reduction in capital spending by major carriers has weighed on
telecom equipment stock performance in recent months, and threatens
to do so throughout 2002. The consensus estimate now appears to be
a 26 percent drop in carrier capital expenditures in 2002 resulting
in a 23 percent decline in aggregate revenues for the equipment group.

Click here to read more.
http://www.thetelecommanalyst.com/article.asp?docid=6434&nd=0129


2. Horror story: Covad is back from the dead
The company's rebirth is miraculous. But there's a problem: No
one knows if it can still make money.

By Dave Sterman, equity research analyst

The demise of NorthPoint Communications, Rhythms NetConnections,
and Covad Communications (COVD) in 2001 seemed to spell the end
of the data local exchange carrier (DLEC) sector. Investors were
left to conclude that the DSL industry would now reside squarely
in the hands of the regional Bell operating companies (RBOCs),
such as Verizon (VZ), SBC (SBC), Qwest (Q), and BellSouth (BLS).

But to the surprise of many, one DLEC, Covad, has emerged from the
ashes to fight another day. At least one analyst thinks the company
is poised to get it right this time.

Click here to read more.
http://www.thetelecommanalyst.com/article.asp?docid=6320&nd=0129


3. Good values: A tale of two values
This pair of wireless infrastructure stocks offers long-term growth--
don't let the prices fool you

By Ben Mattlin, equity research columnist

Over the past two years, as the market's become more challenging,
investors are learning to be more selective than they used to be.
Rather than seizing momentum and growth, which worked well in the
'90s, successful investors are adopting a value orientation.

But which discounted stocks represent true value and which are
inexpensive simply because the company they symbolize is no good? In
telecom, where most stocks have gotten hammered, it can be especially
difficult to distinguish between duds bargains.

Click here to read more.
http://www.thetelecommanalyst.com/article.asp?docid=6198&nd=0129


4. Fishin' chips: Consolidation and content
Wireless semiconductor stocks wrestle for share of a shrinking market

By Dave Sterman, equity research columnist

As we saw in the IPO market in recent years, fast-growing
industries attracted a number of new players. But now that those
industries have matured, growth has slowed and many smaller players
are looking to merge in order to compete against the top tier
players. As we noted a few weeks ago, wireless service providers
in particular look set to engage in a merger orgy.

It now appears that the same could be said for the wireless
semiconductor industry. As growth in wireless handset sales has slowed,
chip vendors are also looking to march down the aisle. In mid-December,
Alpha Industries (AHAA) and Conexant (CNXT) announced plans to merge
their wireless chip divisions.

And more deals may emerge in the months to come. "We wouldn't be
surprised to see additional activity as companies work to reach
critical mass at a much higher level than in the past," says
CIBC's Dale Pfau. Many players added factory capacity just as
the industry slowed.

Click here to read more.
http://www.thetelecommanalyst.com/article.asp?docid=6239&nd=0129


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Broker reports
-----------------------------------------

1. WHAT'S HOT?: Wireless profits

Alltel (AT) beat the firm's fourth quarter estimates of $0.74 by
a penny a share, thanks to a strong performance from the group's
wireless unit, which showed surprising strength in ARPU and margins.
(2-page report for purchase - $10)
Click here. http://www.thetelecommanalyst.com/download.asp?docid=26087201&nd=0129


2. SPECIAL REPORT: Cellular signals

Predicting "mixed results" in Q1 2002, CIBC explains when the
outlook should improve. Top picks are named in components,
infrastructure, and handset manufacturers. Discussion of handset
sales and subscriber trends. 24 exhibits.
(29-page report for purchase - $75)
Click here. http://www.thetelecommanalyst.com/download.asp?docid=25996183&nd=0129


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Free and sponsored reports
-----------------------------------------

1. FREE RESEARCH REPORT:
Qualcomm (QCOM) is a CDMA pure play

The firm explains why QCOM is its preferred investment vehicle
for playing code division multiple access (CDMA) technology, which
is the core technology for 3G wireless networks--which wireless
carriers plan on deploying over the course of the next several
years. This five page report, which usually sells for $10, is free
to Multex Investor users for the next 72 hours.
Click here. http://www.thetelecommanalyst.com/download.asp?docid=26080760&nd=0129


2. FREE SPONSOR REPORT:
Morgan Stanley explains its "neutral-volatile" rating on Motorola (MOT).

The firm says MOT "has the ability to become the "Intel" of telecom
equipment," and lists key investment strengths and risks. Multex
Investor members can register for the firm's free-research
trial to access research on this and other stocks.
Click here. http://www.thetelecommanalyst.com/download.asp?docid=4345572&sid=8&nd=0129


Top 10
-----------------------------------------

Top 10: Most recommended telecommunications stocks
This week's selection includes newcomers to the list ViaSat (VSAT)
and CTC Communications (CPTL)

Using NetScreen Pro, the professional version of Multex Investor's
Net Screen, we sorted for the most recommended telecom stocks with
significant analyst coverage (at least 5 in the current quarter),
and sorted the result for you according to the highest average
recommendation and by valuation.
Click here. http://www.thetelecommanalyst.com/article.asp?docid=1502&nd=0129


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