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Technology Stocks : ORFR-ORBIT/FR
ORFR 3.5000.0%Apr 10 5:00 PM EST

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To: Naggrachi who wrote (407)5/9/1998 12:07:00 AM
From: Grantcw  Read Replies (2) of 475
 
Naggarachi,

I understand your concern. It too concerns me that the stock price is so low as I also have a little faith in technical analysis predicting fundamentals.

What do you think about the acquistion of RDL? Revenues of 13 million added on to ours would sure look nice. Rumor is that it will be financed with all cash and I'm pretty sure that the company had positive earnings. Keeping the same margins on these 13 million revenues(maybe higher margins if economies of scale can be utilized) would be conservatively

13 million X 40% = 5.2 million earnings added to cover the fixed costs (which probably will also be higher), right? I think the odds of ORFR making estimates with this acquisition would be a lot better once this deal closes.

Any comments?

Grant
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