Thanks for the article. Could someone make the case why this is NOT one of the premiere stock opportunities of the late 1990's? I can't help but think that a company with a 15mm cap, 5mm shares, 12mm current annual sales, state of the art current technology, a unique solution for 1/5 of the HP conversion market, and a mandate by the US gov to spend $5 - $10 billion over all during the next 8 years, is not a unique opportunity. What are the downsides? Small marketing, manufacturing resources, no real beachhead yet in the significant markets (although I am hoping to hear of some new sales soon), purchasers comfortable with a known entity. I have been here before with other stocks. In particular I 'suffered' through the problems that Cyrix had before it was bought by NSM. A very parallel situation with Intel as the market gorilla and Cyrix with equal (and I think actually better) products selling at 1/3 the price. Cyrix had a hell of time gaining market share. Not quite analagous in that Intel's PR campaign directly to the consumer is somewhat different, hopefully, than the more sophisticated $5mm station manager's purchase of broadcast equipment. OTH, could be that Harris and Comark will intimidate these purchasers out of switching allegiance under a variety of "fears" about ACRO. Or, Harris, Comark and ACRO could get into a "price" war. I actually doubt the later because production capacity in this market is going to be a big factor in an orders squeeze. Down the road, it may also be a factor in larger performance swings in these companys' P&Ls and BSs. (Still, I like Mancuso's business style, and I think this stock is just not on anyone's visibilty screen yet.)
Just for some perspective, I would like to hear a reasonable negative case for ACRO. |
