ACTM $100 Million Cable Modem Contract with MOT Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: BOB who wrote (363)	12/15/1997 2:08:00 PM
From: Rob Preuss	Read Replies (1) of 1250

Old news... Zacks' still give the same data as in my previous post: Message 2909353 Here's a summary of the info on analyst ratings that I have: RATING DATE ANALYST 1. Buy 12/10 AG Edwards 2. Buy 12/10 Raymond James 3. Buy 10/23 Schroder & Co (Stephen Worobel) 4. Buy 10/23 Robertson Stephens (J. Keith Dunne) 5. Market Performer 10/22 Adams, Harkness & Hill (Vernon Essi) I don't have copies of the first two analysts' 12/10/97 reports. I do have copies of the other three analysts' reports... 5. Vernon Essi seems the most negative and states: "We continue to believe ACT has to restore credibility and confidence in its story with the investment community and little share appreciation will occur until Q4 results are reported in late January." CY97 EPS estimate: $0.75 CY98 EPS estimate: $1.36 "We continue to believe a fair multiple would be about 16 times CY98 earnings. Applying this to our CY98 EPS of $1.36 gives us a current target price of $22. We would emphasize that our confidence is not very high on our $1.36 for FY98 and further diligence is necessary before we upgrade the shares to reflect this valuation disparity." 4. Keith Dunne gives no target price but is more positive: CY97 EPS estimate: $0.75 CY98 EPS estimate: $1.50 "Historically, when EMS companies stumble and lose a major piece of business, the stocks often correct rapidly, but then work their way back to new hieghts over the next 12-18 months. We expect that scenario to unfold at ACTM, although we recognize that the investment is more suitable for value investors or well-diversified, aggressively managed portfolios." "If management can achieve its current indications for a snap-back in EPS in 1Q98, we believe patient investors should be well rewarded for weathering the storm and increasing holdings." "We believe the stock should recover over the next 2-3 quarters given senior management owns over 50% of the company and is motivated to take the action necessary to return the organization to industry growth levels. The last time the company lost a major account (2H95), the stock declined 50%, but almost tripled in the year following its nadir in December 1995." ==> Note: Robertson Stephens is a Market Maker for ACTM. 3. Stephen Worobel is slightly more optimistic: CY97 EPS estimate: $ 0.75 CY98 EPS estimate: $ 1.55 Target Price: $31. "... we believe some weakness may persist in the coming quarters as its OEM customers work down inventory levels and the product sell-through picks up." "We feel the long-term fundementals for ACT Manufacturing are positive and that it can recover from the current problems. We have lowered our 12-month target price to $31 from $37. This assumes a multiple of 20x our 1998 EPS estimate."

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next