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.

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

To: Doughboy who wrote (1247)	6/26/2001 11:20:57 PM
From: jeffbas	Respond to of 1250

A huge percentage of sales is from telecom customers in lousy shape, like Nortel. ACTM has a poor balance sheet as GS says - look at their liabilities/debt. The margins in the ECM business are so low (under 10%) that they can't afford to have any significant percentage of their capacity idle, or they will lose money. Leveraging their balance sheet (borrowing money) to finance acquisitions is DUMB for a low margin, cyclical business. If this technology recession/depression continues through the end of 2002, ACTM and a lot of other companies might not survive. That is why the price is where it is now. If the economy recovers before too long ACTM will go up a lot. It is a gamble.