ACTM $100 Million Cable Modem Contract with MOT Message Board

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Technology Stocks : ACTM $100 Million Cable Modem Contract with MOT

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To: Rob Preuss who wrote (1115)	11/17/1999 12:04:00 PM
From: Rob Preuss	Read Replies (1) of 1250

ACTM priced their public offering last night at $26+1/16. The offering was a strong deal, very well received, and was 2+1/2 times subscribed... so those who couldn't get the shares they wanted in the offering were in there buying this morning. Hence the rise in price and volume. Overall, the company was selling 2.5 million shares. So they should net around $65 million in cash. Initially they'll use this money to pay down their debt in their credit facility... that will de-leverage their balance sheet. But longer term they may do some more acquisitions. They have a desire to be in the far east and to have a bigger presence in Europe as well. Thus, the point of this offering is basically to fund their growth strategy. Now 2+1/2 times subscribed means there was demand for about 3.75 million shares that could not be met in the offering... Since NASDAQ counts every trade twice, it would take trading volume of 7.5 million shares just to meet this demand... My RTQ shows just over 2 million shares traded so far today, so I believe there's still quite a bit of unmet demand (like over 5 million shares). Rob

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