SI
SI
discoversearch

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 : Advanced Fibre (AFCI) ** IPO
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Milkman who wrote (252)1/7/1998 9:01:00 PM
From: Clam Clam  Read Replies (2) of 3299
 
AFCI investors,

A much lesser quality company than AFCI, but one in the same business as AFCI, called Teledata blew up today. It only preannounced a minor miss in revenues but guided estimates down for next year. Get this, the company pre-announced $22.5mm rather than the $24mm estimate and the Smith Barney analyst took his price target on TLDCF shares from $50 to $13. Yes $13.

It seems TLDCF is seeing tremendous weakness in Asia, has no visibility on its previously booming business in Brazil/South America and its order from Deutsche Telekom has been delayed. So lets see... other than Asia, South America and Europe they are doing fine. Too bad they don't have any business in the US where LU, AFCI and DSC dominate.

It is possible that TLDCF management might have mis-executed and pointed blame on a convenient target but TLDCF does have support for its claim. They say their business in Indonesia has disappeard as the Indonesian currency dropped 40% in the month of December and another 30% since January 1st.

TLDCF was known in the investment community as a little AFCI. TLDCF's and AFCI's products were both designed as cost-efficient solutions for regions with sparse, rural populations ("low line-count"). This was because the big companies didn't spend much money for this niche market. The obvious places for such products are emerging markets like China where there are hundreds and hundreds of millions of people that do not have phone lines. The bulls on the stock say even in a bad economy, a phone is a basic infrastructure item whose growth will not be hampered (i.e. not a discretionary expense).

This is tremendously BAD news for all international-reliant technology companies.

Regarding an entry point into AFCI, I think it should be put off until we know more. It is too risky. Even if the quarter is fine, Q1 will not be a big quarter based on what I am hearing. I like this company a lot but unless they sign up another US RBOC over the near term, I do not see a sustainable move up in the stock in Q1.

Good luck.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News