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

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To: joemjo who wrote (1137)12/30/1999 12:04:00 PM
From: Rob Preuss  Read Replies (1) of 1250
 
Joemjo,

On Yahoo you posted that there is an article
on ACTM in today's Investor's Business Daily.

Could you locate the article and post it here?
If not, could you please summarize the article?

If you believe that ACTM deserves a forward PE
of 25, then the stock is close to fully valued
(since CY00 EPS is estimated to be about $1.70
and CY01 EPS is estimated to be about $2.25).

But some analysts are saying that ACTM deserves
a higher PE multiple (as much as 35) which would
be more in line with the rest of the EMS industry;
with this higher multiple, ACTM is undervalued
and should be trading more like $59/share.

Does the IBD article shed any more light on ACTM
and its prospects?

Rob
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