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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 (1130)	12/2/1999 10:55:00 PM
From: joemjo	Read Replies (1) \| Respond to of 1250

Rob, Too bad we gave back the 2 points today. I have trouble seeing why Jabil would want ACTM. Of course I love them and have kept all my shares and think that they are worth more than 30 or 32 but what can they offer Jabil. I little bit of underutilized capacity? Maybe a couple of new clients especially in the tele-comm area? But I don't see any geographic enhancement. I don't see and engineering enhancement. A little more size but that would be just an incremental step. Why do you think DIIG sold out to FLEX for 30 times calendar 2000 earnings when a lot of these stocks trade at a premium to that multiple anyway? That concerns me. Of course 30 times ACTM's 2000 earnings of $1.70 would be $51 per share. Not bad from here but I am not sure ACTM is of the same quality as DIIG. I think Jabil would be more likely to buy PLXS for the better margins that their engineering provides. Do you think I am correct that PLXS has a more value added approach from the engineering side? I think that Jabil (or SCI actually) would rather have PLXS. SCI seems to me to need the most help with their margins. As far of acquisitions I think BHE should be the most vulnerable. Probably worth $45. Some one mentioned that DIIG sold for 2.1 times sales. ACTM has trailing sales of about $700 million. So a buyout at 2x's sales would be $1.4 billion or about $90 a share. Even one times sales would get you a fifty percent rise from here. Do you think that ACTM just issued more shares to merely clean up the balance sheet in order to be easier to sell or to get ready to make another acquisition? Would Pino sell some of his shares at $26 at the last offering if he was about to sell the company? I just don't see ACTM selling out in the near future.