ACT NETWORKS Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : ACT NETWORKS

ANET 130.04

-1.9%

Jan 7 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: TWC who wrote (2137)	11/25/1997 8:54:00 AM
From: Paul Haynes	of 2326

TWC, Unfortunately for those long in ANET or those who are holding options (like me, January 12 1/2 Calls), the accountants now value this stock more than the market. While I am not saying that Ben Graham or Warren Buffet would have bought this stock, I do think there is some value here. The only logical reason (and I am not saying the market is logical) that I can put forth for ANET trading below book value is what you mention in your post. The equity position will be reduced in the near term due to losses. Some of the sell-off may also be attributed to general market forces, margin calls, etc. I do believe that this will be a good business to be in for the long-term. I have not done a lot of industry research but my assumption is that competition may be pretty stiff and tightening which would have pressure on pricing. ANET does not appear to hold a large market share and earnings may be vulnerable to pricing pressure (IMHO). Finally, acquisition costs associated with mergers have been cutting into ANET's bottom line in recent quarters (I think). I do not have any idea if this will continue. Regardless, it is hard to believe that this stock was above $30 earlier this year. Have a great day, Paul Haynes

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next