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Technology Stocks : Applied Cellular Technology (ACTC)

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To: caledonia who wrote (857)4/1/1998 1:02:00 PM
From: incomep   of 1062
 
David: I do not know much of the ACTC because I am not familiar with the network service stuff. My answer to your last question is that ACTC is trying to switch its gear to the infrastructure of connecting network for small companies and schools and then maintain the service. I think the company started with selling cellular phone.
In terms of FA, I am not very confident to mgmt, they might be capable, but they are not honest (as the impact of cutting the division of cellular phone division). However, my positive put is that they are going to borrow money (investing bank) to consolidate and integrate the acquired companies and improve their profit margin. How they are going to do it and how long it takes, I do not have much perception. Also, I compared their good wills for the last two quarts, it starts decreasing, but I do not know this quart. However, the account receivable is skyrocketing. If the cash flow continues to be negative with less than 1% margin profitability, I am going to abandon the boat. Mr. Davis might be able to give us some input. But he is too occupied by other stocks.
I am a research scientist majoring in Biotech. Very occupied by the basic research. Do not have much time to scrutinize this company. I appreciate your input.
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