Ridge's list of big winners for next year, page-45

Hi Ridge,

As Grant62, I am saying TMS (to be re-named Global Television Services, re-capitalised and for all the other reasons that I have been arguing to date), from a current trading base of 3.7c (25/10/02). On a fully diluted basis, I have already posted that I expect the share price to rise to between 15 -17.5c (equates to somewhere between 52 -61c on the current trading scale).

TMS, therefore, qualifies for my sub-10c pricing pick.

In the alternate, I am saying SLX (currently, at 54c, 25/10/02) which qualifies as my sub-$1.00 pricing pick.

Best improving sector in 2003 will be the telcommunications, but not until February /March 2003. Reasons:
1)
some bottom-lining recovery in place for the sector generally;
2)
HTA to launch 3G services by end-Q1;
3)
T3 to be resolved, or an alaternative plan developed and implemented;
4)
Tier-3 and below capacity players to be finally consolidated together to form an alternate to Telstra;
5)
SingTel to finally start getting its act together for Optus;
6)
UEC to be divested by UEL (most probably as part of a sector shaping catalyst amongst the lower order players);
7)
research results to be showing increasing promise in the photonics area (ie: CRC Photonics, SLX's Photonica, etc);
8)
overseas telco sentiment to change tune as progressive roll-out of 3G commences, European Governments re-negotiate forward looking 3G licensing fees, excess backhaul capacity, etc is soaked up, increasing regional alliances are formed, etc;
9)
fewer in number local small telco operators go out of business (ie: instead of capitulation, you will see sector concentration, strengthening of core bases, and an increase in strategic behaviour, but without the forward excesses of the past); and
10)
significant overall M&A activity throughout all levels of the sector.