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: Robert Florin who wrote (866)	1/1/1998 5:11:00 PM
From: Eric Hautala	Read Replies (1) of 1319

The way I see it, there are maybe three bundle sellers right now - GSX, HRS, and STM. Not really sure how STM does business but I'm sure HRS and GSX offers an end to end service. If I was running ACRO I'd either try to create a virtual bundle of services - essentially aligning companies left out (but wanting in) by HRS, GSX, and STM or I'd start looking to join someone else attempting to create the same bundle. Following the first strategy, they'd need to tap into an engineering organization, antenna manufacturer, and construction team in tandem with their transmitters (and perhaps push even onto the studio floor with production equipment) to effectively launch one of these pups. I'd bet there are plenty wanting in. To realize the second strategy, you'd have to wait for someone else trying to mop up the "other" business left behind by the big three (or two). I think ACRO is probably following both paths right now. Either path leads to a viable public company with substantially higher revenue than they have right now. The general feeling is that HRS, GSX, and STM has limited capacity given the upcoming crush of activity - I agree. In fact, the potential market is even larger than most know as people are concentrating on the HDTV aspects of DTV transmission - the data delivery aspects of the medium (for fast data download) is being experimented on but remains relatively unknown. Could have huge impact. How do you get thousands of markets converted in just a few years? We'd have to average 30 constructions a month (someone check my math) to get us to the FCC mandated conversion date just on existing analog alone. 5x of '97's CP activity every month - as mandated by the FCC today. If I was HRS, STM, or GSX I'd simply pay the $15M-25M it would take to eliminate ACRO from the market and have the whole pie to myself. Nearby channel technology alone is worth that alone in a heads up competition with another bundle seller. I bet if ACRO starts to look like it's got a viable business that someone buys them out. We will see something big in the next 6 months. fcc.gov ~

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