Street Scoope Focus:
* ACT Networks *
by
David Rubins
Recently, ACT networks (nasdq:ANET) has been rumored the target of an
aquistion that has lead to a bidding war. Recent negative earnings reports
have sent the stock price into a tail spin, emerging just above its BOOK
VALUE level. Over 6 million shares were traded in 2 days. One stock watcher
has proclaimed that shares have been under accumulation, due to news announced
by the company offering a $10 million dollar share buy back. However, recent
street talk has emerged the possibilities for ACT Networks to be in negotiations of a
stratigic aquisition by Ascend Communications (nasdaq:ASND) and another undisclosed
company. "Recent purchase of SourceCom, which was recently approved by a federal
bankruptcy court, has increased the appeal of ACT Networks, along with the potentially
expanding customer base", according to the watcher's report. Act Networks has been
focusing on customer expansion in Latin America and in Asian countries. And, with the
with the inclusion of Sourcecom, has hopes for obtaining its stake in the fast growing
teleponey market, as stated in the recent company conference call.
Aquisition or not, ACT Networks appears to be a company that has re-focused it growth
model, and is poised to purge the barriers that have attributed to its recent decline.
One investor has stated, " I like the fact that it has a handsome cash at hand to aid
in its ventures, while keeping our dowside risk, at these levels, stabilized.
This story was sent to me, thought those of you who care would like to see it. |
