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: goober who wrote (1258)	5/7/1999 7:07:00 PM
From: Karl Drobnic	Read Replies (2) of 1319

ACRO was originally a simple manufacturing story with a clear path to sizable, sustained profits. It had a clearly differentiated product in a politically mandated industry. Now the picture is opaque. Ongoing shareholder dilution has eaten into the size of the profits, as political manipulation by special interests has delayed the mandate. Prospects for the future are now strongly tied to Sinclair, a proven winner, but it's not a simple manufacturing story anymore. ACRO now has an inside pipeline to the needs of the TV broadcasters and should be able to do a better job of packaging and selling, but it will have sell more just to stay even with shareholder dilution. If plans to contract out manufacturing and concentrate on selling and R&D work out, the breakeven point can be lowered, somewhat offsetting the dilution. But it's not the simple story that once it was.

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