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

To: jeffbas who wrote (1047)	7/17/1999 11:57:00 AM
From: rich evans	Read Replies (1) \| Respond to of 1250

The Market is forward looking and an Act Investor or broker would be talking/thinking about 2000. Also Act was one of the companies listed in the Big EMS publication put out by Piper Jafferies. The rest were the big ones plus BHE and PLXS. So the PEs in the favored group are much much higher. Even BHE and PLXS is double the PE. So Act should start getting some catch up valuation IMO. Acts growth has been their on the charts revenue wise but it shows dismal and negative on the earning growth, ROA, ROC. If "people" think this is now changing then we get the turnaround play. Also, there is a lot of business out there as you know and the big boys can't take it all although they will get and keep the bigger player OEMs but there are also a lot of smaller OEMs outsourcing now. Look at PLXS with its nitch in engineering and design and medical electronics. Its customers are almost everyone of the medical OEMs outsourcing listed in the report. So I think ACT at this point should show greater returns stockwise because of catchup then the continued march up of the larger companies . Alsoi on the prospectus , wasn't the valuation estimates which ACT, and analysts and the investment company hired all in the mid 20 range for 2000. the number 26 comes to mind. Rich

To: jeffbas who wrote (1047)	7/19/1999 11:04:00 AM
From: Rob Preuss	Read Replies (1) \| Respond to of 1250

I agree with Rich in that the markets will be mostly forward-looking. They do look back a little... after the 1997 inventory fiasco, they looked back and said "with your track record, I want to see actual earnings... I won't just accept your rosy future outlook" but in the present situation they'll look back and say "oh, you had only $0.50/sh in earnings because you had these big M&A charges... but this merger is going to help grow your business more rapidly while providing a more diverse customer base... without these M&A charges your would have had respectable earnings and the recent business trend has been good... so there's good reason for me to accept your rosy future outlook." In addition, I look forward to the bigger float once the merger is complete. I think part of the current uptrend in price is due to larger institutions nibbling at the available ACT and CMC shares; once the merger is complete, I expect they'll want to acquire even more... I'm sure you've noticed that there has been very little in the way of price pullback recently: it seems we see each run-up on bigger-than-usual volume followed by a brief low-volume lull with a steady price (in spite of broader market conditions). Anyway, I have to believe we'll see the mid-20's by year-end.