The RF to Light 100 dropped 1% last week, YTD +12% at 2412. Level 3 Communications agreed to acquire Broadwing. Fairchild swung into a 3Q06 profit but warned that 4Q may be below expectations - stock dropped 16%. Motorola reported weaker wireless infrastructure sales - stock dropped 10%. Microwave companies are listed in Forbes's 200 best small companies: Aeroflex, Anaren, Ansoft, Comtech, Micronetics and Microsemi.

In the News: Profit-taking takes gloss off an upbeat week. DOW above 12,000. If early (3Q) financial results are representative, Wall Streets fundamentals remain solidly underpinned. U.S. economic growth is likely to stay lackluster for now, i.e. around zero per cent.

Market oversold indicator: up to 72%
Market overbought indicator: down to 51%

New Highs: AEIS, AGR, BLS, HITT, HPQ, IBM, IFX, LMT, MOT, MSFT, OPLK, ROG, RTN, T, TDY, TWX
New Lows: MSCC

Top 5 - last week: Broadwing (19%), Siemens (7%), Powerwave (5%), Sirenza (5%), IBM (5%)
- YTD: Broadwing (155%), Hittite (113%), Avici (91%), Finisar (81%), Rogers (77%)

Bottom 5 - last week: Fairchild (-16%), JDSU (-12%), Motorola (-10%), Applied Materials (-9%), Corning (-9%)
- YTD: Zhone (-52%), Powerwave (-48%), Vitesse (-40%), HEI (-37%), Bookham (-36%)

by Sectors:

Space & Defense : -1%, YTD +16%
Communic. Services: +2%, YTD +31%
Network Systems : -2%, YTD - 4%
RF Semiconductors : -4%, YTD + 6%
RF Components : 0%, YTD +15%
F/O Components : -4%, YTD +14%
Miscell. : +1%, YTD +13%
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RF to Light 100 : -1%, YTD +12%