Able Telecom (ABTE) Message Board

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Technology Stocks : Able Telecom (ABTE)

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To: contax who wrote (671)	6/9/1999 12:41:00 PM
From: david james	Read Replies (1) of 700

Hi Karim, I get my institutional information from Bloomberg or from stocksmart.com Either way, you will have to pay to get recently updated info. Able used a very poor financing structure to obtain MFS from Worldcom. And when Asensio saw this (especially the convertible debentures), he jumped all over it. MFS also lost some key management which they are slowly replacing. Able is unquestionably solving their problems although I have no doubts that there will be a few bumps ahead. However the stock 'should' be trading at a Price to Revenue of around 1 - which would mean a market cap around $450 mill. Currently the market cap is about $80 mill. There may be around 14 mill shares once the financing is completely cleared up. So I figure the stock needs to be above $30/share before we can consider them fairly valued. Some people are worried about the fines. However, as mentioned in the 10k, Able included a 'reserve' of $40 mill in the purchase price of MFS to handle any added cost of projects they were inheriting. And the fines will probably come to around $5 mill, so this they should have plenty of the reserve left. Also, remember that the contract is for close to $500 mill, so this is just 1%. Here is some recent info on the new deadlines for the New Jersey EZ PASS. ettm.com ettm.com Also, this contract is just one of many that they have. They have steady work from Worldcom - with a fixed percentage profit (12% I believe), but this work is not announced, so many people give too much weight to the problems with EZ Pass (and they are solving those too). David

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