Acrodyne (ACRO) is one of two pure plays in the TV Message Board

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Technology Stocks : Acrodyne (ACRO) is one of two pure plays in the TV

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To: ken whited who wrote (1204)	11/24/1998 10:52:00 PM
From: ken whited	Read Replies (1) of 1319

This was posted today on the message boards at Yahoo by Success_is_Spelled_ACT messages.yahoo.com@m2.yahoo.com Thanks for the question. I could see how you might feel this way after the stock action today. Also, nobody likes dilution but I feel the benefits outweigh the negatives many times over. First, ACRO had little chance of obtaining high sales volume or sales to major players due to their size and lack of capital. This is now taken care off. We also have potential sales to at least 65 or so stations that Sinclair owns and they could acquire more(or sell some). Sinclair is fairly proactive and should equip these stations early resulting in a nice base to build on. They will certainly have connections and their name being associated with ACRO should bring on a tremendous amount of extra sales to other broadcasters. Pure volume of sales in fact is important because they have a certain level of operating expenses they need to cover before they can start to see a large return, plus they can now sell higher power units with bigger margins. Nat Ostroff will likely have some helpful ideas and many extra connections for sales. They purchased 800,000 shares of Scorpion so this is not really dilution(that portion). The warrants are exercisable based on certain criteria, if they want the stock they have to produce sales and income. Long-term warrants are not uncommon and if they can make ACRO much more successful they deserve a discount. If they make the company into a giant it won't be relevant, look at the potential sales growth. SBGI is getting into this for their stations but also the stock, they want to make it valuable. If a huge company like that wants a big piece of this stock I feel pretty good. They are also a fairly aggressive company. These are just my opinions. I also don't agree with your comment about Scorpion. Let's wait and see how it plays out. I think we would still be struggling to hit $4,000,000 in quarterly sales without this deal. Won't matter anyway without better stock exposure.

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