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 (1208)	7/24/2000 11:54:22 PM
From: G.M. Flinn	Read Replies (6) of 1250

Rob, ACTM looks like a great buying opportunity. Chase just closed a new $250MM bank line with ACTM a week ago, doubling the existing $125MM facility. ACTM just reached a definitive agreement to acquire BEA for $57MM a week ago, simultaneous with the new bank facility, bringing pro forma total co. revenues to $900MM. pro forma revenues for ACTM w/ BEA and the GSS acquisition are $1.2B. A bet against ACTM now is a bet against Chase Manhattan Bank, which just gave the co. access to $250MM and BEA who just reached an agreement to sell/merge. There is almost no chance that professional due diligence by these major players and/or their financial representatives would have missed anything materially wrong. ACTM is trading at about 30% the P/E multiple of all of its larger peers now ... a definite value play with significant upside IMO. Of course, we'll have to wait and see what the conf. call reveals Thursday evening. Glenn

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