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Technology Stocks : ACTM $100 Million Cable Modem Contract with MOT -- Ignore unavailable to you. Want to Upgrade?

To: Rob Preuss who wrote (1036)	7/2/1999 3:56:00 PM
From: jeffbas	Read Replies (1) \| Respond to of 1250

It is tough to find a positive spin. About the only thing you can say is that if you are not over $500 million sales forget it. ACT barely makes the grade. Unfortunately, I think the hurdle probably now is $1 billion, which BHE handily makes. I think they are no longer in the same league, which is the minus. Note that BHE appears to have paid about 35% of sales for a company which is larger than ACT will be. (We do not know about debt acquired.) Not counting debt, 35% of sales on ACT is roughly $15. Without knowing anything about the acquired company (or debt assumed, if any), it is a bit difficult seeing ACT as materially undervalued. This suggests we should understand that acquisition better to see what standard of reference it provides for ACT's valuation.