Acrodyne (ACRO) is one of two pure plays in the TV Message Board

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Technology Stocks : Acrodyne (ACRO) is one of two pure plays in the TV

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To: Eric Hautala who wrote (821)	11/16/1997 12:42:00 PM
From: Paul Shield	Read Replies (2) of 1319

Eric, I disagree with your assessment completely. You are losing sight of the big picture. Mancuso has made huge strides with a tiny company in a relatively short period of time. To the best of my recollection he has in about three years doubled US penetrance from 5 to10%, worldwide penetrance from 1 to 2% and expanded from a respected low power transmitter company to a full range transmitter company with state of the art products. He has done this while being completely underfunded the entire time for such an ambitious goal and he has done it. Moreover, he has done it with relatively little dilution of the stockholders equity. THAT is the BIG picture. I do a lot of investing in biotechs and I have seen how companies, when they are doing a huge expansion can dilute stockholders greatly. He has not done that. My own assessment is that he MAY have made a misjudgment in how to finance this last bit of the puzzle. I am not convined that he made a misjudgment. He started to try to get additional financing 9 months ago. This was at a time when he had enough money to be able to post bond. However, I ask you, could you have predicted how long the delay with Congress, the FCC and the broadcasters would be? He readily admits that he expanded prematurely. You have to make a judgment and he did and it was the best he could make given the circumstances. He didn't jeapardize the company in doing so, but did get overextended. If he didn't expand to meet the needs earlier and broadcasters placed orders earlier we would have faulted him for that decision. He did explore many other alternatives in funding and couldn't pull them off. He would have liked to walk away from this deal, knowing it was a bad one but was advised by his lawyers to bite the bullet and keep the big picture in mind. Everyone should keep in mind that many alternatives for funding entail additional fees, longer waits until you can complete offerings and that during that wait the stock can be shorted. We know how much integrity the MM's have and that the stock price could have easily been driven down by shorting -- that was a consideration that ruled against a number of otherwise sensible alternatives. In summary, I don't like the deal but I have a big investment in ACRO and feel very comfortable because I believe that they have the best products, the least expensive for the broadcasters to purchase and to maintain and run and are state of the art. In addition, Mancuso and their chief engineer are gems in terms of management and product development. I am sitting on a loss right now but couldn't be more comfortable.

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