Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Invest / LTD -- Ignore unavailable to you. Want to Upgrade?

To: drsvelte who wrote (11930)	2/6/2000 3:44:00 PM
From: Thean	Read Replies (2) \| Respond to of 14427

AFCO - Road show secondary offering/small float/FPD play AFCO announced on 1/26 that they are doing a 3.07 MM secondary offering. AFCO's current float is a tiny 1.3MM and even after the secondary offering the total float would still be a small 4.3 MM. Based on a parallel scenario for another FPD vendor (PHTN) and SAWS (which is not in FTP but in semi but it also has a small float and other parallels), the time from initial secondary secondary announcement to final placement takes about 45 days. The road show by AFCO's management is expected to begin soon, maybe as soon as next week. What's the big deal? Well, in the cases of both PHTN and SAWS, their stock prices began to trend slightly up in the week following their secondary announcement but shot up at least 30% the week after and this was most probably driven by the road show. Their stock prices took a pause in the fews days prior to their secondary offerings and they took about 1 week to digest the additional shares. After that, their stock prices began to trend up again. Will AFCO repeat this pattern? The estimated offering date is 3/10. So for the next month, AFCO has this 30% pop potential if the market for the telecommunication tech sectors holds. AFCO is a small cap - market cap being only 50MM. Daily volume averages 84,000 shares. But they are in the right place at the right time since their main business is supplying to the cell phones. Below is what AFCO describes itself: "Applied Films Corporation is a leading supplier of thin film coated glass and physical vapor deposition (PVD) equipment to the information technology industry, particularly the flat panel display industry. Flat panel displays are found in a wide variety of consumer and industrial products, including cellular telephones, calculators, pagers, video games, office products, and laptop computers. FPDs have also been identified as a potential replacement for the CRT in televisions and computer monitors." AFCO is currently trading at around $15 but a 30% pop would have it break above its high at $18 3/16 (established recently) and into the low 20's. $15 is a support and $16 is the midline BB. It doesn't take much for AFCO to stage a spike here due to its small float and lack of name recognition. Another FPD component maker that has benefited from GNSS's downfall is SAGI, whose digital focus is stiking the right note at the right time currently. I know AFCO, SAGI, PHTN and SIMG have been discussed here before as a replacement for the FPD plays since GNSS has fallen. Considering PE and future growth, as well as the aforementioned special road show situation, I think AFCO is the most appealing player of the FPD group. What has happened to Steve? Hope he did not suddenly fall sick.