SANTA ANA, Calif., Dec. 19, 2000 (PRIMEZONE) -- Donner Corp. International, a broker/dealer specializing in investment banking and headquartered in Santa Ana, Calif., today continued its positive recommendation on Digital Power Corporation (AMEX:DPW), Fremont, California-based on recent news concerning Lucent Technologies Inc.'s power-systems unit.
Tyco International Ltd. recently agreed to pay $2.5 billion in cash for Lucent Technologies Inc.'s power-systems units. The products developed and sold by the unit, similar to Digital Power's next generation of switching power supplies, are vital to protect high-technology digital products used today in both home and business. Based on this valuation, Digital Power is worth $10-$11 per share, Donner said.
In another industry announcement, Invensys PLC, a United Kingdom company, also with products similar to those produced by Digital Power, announced that it will spin-off its fast-growing power systems division in an upcoming IPO that analysts estimate between $4.25 billion and $6 billion, Donner said.
Digital Power has nearly 20 years experience in the power conversion business, designing, developing, manufacturing and marketing switching power supplies for the computer, telecommunications, office automation, medical and industrial markets. Digital's power supplies are not used in PCs, a sector of the market that has been experiencing recent earnings concerns. Digital Power's recently introduced ePower 300 addresses the need for high-density power supplies that are vital for today's digital products.
Copies of the report on Digital Power are available from Donner Corp. at www.donnercorp.com.
Donner Corporation International is a member of the National Association of Securities Dealers, CRD Number 37702. Any information or opinion provided in this report/release does not solicit or make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities herein. DCI and its affiliates may trade for their own accounts in any securities of the issuer or in related securities. DCI or its affiliates, directors, officers and employees, may have a long or short position in securities of the issuer or related investments. DCI or its affiliates may from time to time perform investment banking or other services for, or solicit investment banking or other business from, any entity mentioned in this report/release. This research report/release has been prepared for general circulation and is circulated for general information only. It does not have regard to the specific investment objective, financial situation and the particular need of any specific person who may receive this report/release. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report/release and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities, if any, may fluctuate and that each security's price or value may rise or fall substantially. Accordingly, investors may receive less than originally invested. Past performance is not indicative of future performance. Copyright 2000 DCI. In the purview of Section 17(b) of the Securities Act of 1933 and in the interest of full disclosure, we call the reader's attention to the fact that DCI was recently compensated by Digital Power Corporation in the form of a $2,500 initial retainer fee and DCI receives $2,000 per month for services provided. DCI will also receive $3.00 for each prospective investor name delivered to DPW and $12,000 for the DCI database, which includes accredited investors and stock brokers. DCI will also receive 5,000 shares of DPW stock. Finally, there will be a negotiable fee for merger, acquisition, institutional transactions, and other business relationships entered between DPW and companies introduced by DCI, which has not been determined as of the date of this report/release.