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.

Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Dealer who wrote (4072)	9/27/2000 7:58:56 PM
From: Jill	Respond to of 65232

I think I like this company, which sold off w/ the sector, and broke its 200 day moving average to close around 25, so I'm putting it on my watchlist: ADCT - ADC Telecommunications, $32 3/8 Rated 1H3 FY00 $0.53E vs. $0.31 First Call consensus $0.54 Greg Mesniaeff 404.266.6344 „h ADCT stock price has been weak lately. It is off a high of about $48 in late July. We believe that general price weakness is due to concern about a slowdown in carrier spending on telecom infrastructure. We believe that investors should take advantage of this price weakness for 4 reasons: „h 1) We do not think that the recent acquisitions of BA Systems will be as dilutive as commonly expected. Furthermore, we believe that BA Systems should contribute revenue of $100 mm next year. „h 2) With the acquisition of BA Systems, ADCT is now "king of the last mile." „h 3) The company has limited exposure to the Euro with less than 10% of revenues derived from European sources. „h Trading at just 45x next year's number, ADCT is trading at only a slight premium to its 40% growth rate and at a discount to its high quality peers. And from a Fool post: ADCT's Morningstar Stock Grades: Growth A- Profitability A Financial Health A Valuation A This company's Morningstar grades compare favorably to any in the industry. It's only a matter of time until the stock price reflects ADCT's merits. This would seem like a great time to add to long positions in ADCT. There's never a sure thing in the stock market, but this company's fundamentals are very strong across the board.