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Technology Stocks : ANTEC Corp. (ANTC) -- Ignore unavailable to you. Want to Upgrade?

To: MikeM54321 who wrote (736)	10/25/2000 3:48:57 PM
From: nghi vu	Read Replies (1) \| Respond to of 847

I would love to see him get the boot but I am not optimistic that ANTC board will share our feelings about EGAN. It is a damn shame!

To: MikeM54321 who wrote (736)	11/2/2000 1:31:57 PM
From: PaperChase	Read Replies (1) \| Respond to of 847

I have concerns about Antec's purchase of the Arris interest from NT. I believe NT agreed to the sale because NT believes cable telephony is NOT going to be a widespread marketing success...especially given AT&T's woes. What is ironic is that AT&T desperately needs to have a local loop presence in order to save parts of its business. First, I question the motivation of NT even doing the deal and relinquishing majority control to Antec. If the growth is truly in Arris products and not in general infrastructure upgrades (as ANTC explained), then why would NT want to "dilute" their pure 82% ownership of Arris by mixing it with ANTC's other product lines and having a 46% interest in the new entity? NT will be giving up control by having minority representatin on the board of directors and having minority ownership of the common stock...all the while ANTC management has proven itself to be mediocre. This doesn't make sense, not for a smart player like NT. I don't believe the line about creating synergy by having 2 companies involved (NT, new ANTC) versus the current 3 companies (NT, Arris, ANTC). The customer only sees the Arris entity now and its not like they have numerous unsophisticated customers that they have to explain the joint venture structure to. Their majority customer has been AT&T, so eliminating customer confusion and creating one entity for marketing reasons is not a supported reason for NT to structure this deal with increased risk and loss of control. Second, given the mediocre financial performance of ANTC and the uncertainty around AT&T continuing its capital investment in infrastructure, I believe ANTC is going to have a tough time getting their huge debt offering underwritten and placed. And I think the interest rate on the debt will reflect this. I also do not believe for one second the earnings projections given by ANTC. Why should an investor believe any projections from ANTC when 6 months ago they couldn't even acurately project or forsee the issues they reported in their past 3rd quarter. This has everything to do with the current stock price not "making sense" from the perspective of foward P/E and price to sales ratios. P.S. I have traded ANTC profitably during the past 1.5 years (by buying shares and selling covered calls during high price volatility). I don't own ANTC now but have been re-evaluating it for purchase.