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Technology Stocks : ATC Communications ATCT

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To: Northern Marlin who wrote (2500)	4/9/1998 9:08:00 AM
From: Bob Myers	Read Replies (1) of 2636

Phil and All, I have been invested in ATCT (4000 shares avg. @ $5) for over a year. I lurk this site daily but speak up seldom, having little to add. I'm trying to put a value on the combined new Co. and this is my thinking. All comments are welcome. First I see the total shares of stock will be about 60,000,000. It is stated that the combined income for 1997 was $250M. Since this is a low margin industry lets assume that total sales in 1998 remains stable and profit is assumed to be 10% say $25M. Earnings per share would the be $25M/60M = $0.42 approx. That translates to a $6.25 share value using a 15 to 1 ratio. At a 5% profit ratio share value would = a little over $3. In my opinion this stock may run up to as high as $6 over the next few days if a trading frenzy continues as it did yesterday. After that I see it settling back to the $3 range until the merger is complete and the first combined earnings quarter gives a more definitive outlook. Then its anyone's guess. Good Luck All Long ATCT Bob Myers

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