From the Briefing:
"ATC COMMUNICATIONS GROUP INC. (ATCT) 2 11/16 +13/16. Daytraders are piling into shares of this teleservices company in hopes that the stock's impressive volume and compelling news will attract more buyers tomorrow. ATCT shares have jumped 45% on turnover of 2.4 million shares, or 13 times average daily volume. In what the company describes as the 3rd-largest merger in the industry, ATC will issue approximately 34.2 million shares of stock in exchange for IQI's equity. IQI shareholders will own 57.5% of the common stock after the merger and ATC shareholders will own 42.5% of the combined company's shares. Based on ATCT's current share price, the deal is valued at approximately $91.9 million. On a pro-forma basis, the combined company's 1997 revenues were approximately $250 million. The combined company has approximately 8,000 teleservices professionals, 6,000 workstations, and 21 call centers. It's list of clients will include American Express, AT&T, Bell South, First USA, Proctor & Gamble, Sears, U.S. West, Universal Card, and Western Union. The surge in volume will definitely put ATCT near the top of the list of stocks experiencing the largest volume increase. Because professional daytraders use this type of information to locate stocks that may perform well the next trading session, it is likely that ATCT shares will rise into the close, as today's players position for a pop in price at the open tomorrow."
Regards,
Addi Jamshidi |
