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: jeffbas who wrote (414)	1/23/1998 5:28:00 PM
From: Rob Preuss	Read Replies (1) of 1250

I'm curious as to when regarding valuation issues. While I'd agree we cannot expect ACTM to have a forward PE of 28 now, I don't see why that's unrealistic once the next two earnings reports meet or exceed expectations... maybe we'll even have to wait for the Q2 report for this to happen but, unless we're not really looking at a long-term growth rate of 27.5% (as reported by IBES) or more (as the company states) or we're looking at reduced earnings expectations (for some reason), I don't see why prices shouldn't eventually align with this sort of valuation. For the moment, the market is holding off and saying "show me" the earnings and growth... folks have been spooked and burnt. But once earnings reports come in as expected... They were doing an EPS well over $0.35/quarter last year until they hit Q3. If they can do $0.30-0.35/quarter in Q1 & Q2 of CY98, they should be on target for $1.28/sh. Why do you have lower valuations?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next