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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (22288)	10/19/2005 10:02:27 PM
From: E_K_S	Read Replies (1) \| Respond to of 78763

Hi Paul - What's your experience with ACTI? Have you owned it long? Why did you buy in originally...their technology or basic "value"? I like the company. Here are some of my thoughts . . . ACTI is an interesting company with a set of digital identity systems that are used by EDS, IBM, Maximus, Northrop Grumman, and Unisys. The stock was recently trading at $10 in Dec 2004 but is now trading at a multi year low. It appears that there has been some management reshuffling with the CFO resigning, and a director leaving the company. They recently acquired another company for $21 million and announced a restructuring that will reduce their workforce by 13%. The company has several technology patents of value that may not be figured into the value in the key statistics that you posted. They recently sold the exclusive rights to one of their patents for $4.1 million. I see this company having a problem of marketing their technology and with the right distributor and/or integrator (i.e. Microsoft Sun Microsystems, Dell) or partner (i.e Google) sales could explode. I have been trying to locate a "value" investment that has this type of technology. This could be a five or six bagger if it hits with it's network authentication technology. They have an enterprise authentication security technology that utilizes an end-user smart card (and even finger print biometrics devise) that works over any Internet based network. It's so secure that many gonvernment accounts use it! Google is working on a hosted network centric service that needs such an authentication security system. Their beta test service will have end-users (enterprise customers) use their network to host and store several types of end user applications including Sun Microsystems desktop utilities. Both Sun and Google have long been interested in delivering applications via the Web. Programs sent that way, such as Google's Gmail e-mail system, can be accessed by any connected PC. ( usatoday.com. Their solution relies on a secure end-user authentication "open source" layer which ACTI can deliver now (they meet the specifications for many government accounts). Google could license (or even buy) their technology and provide it to their customers at no charge. There are many large corporate customers that would provide these biometrics and smart card devices to their customers at no fee in order to provide a secure end-user (including mobile cell phone user) environment (brokerage companies, banks, or any other e-commerce services). Does ACTI have the marketing expertise to promote their technology to Google and provide them the vision to invest in a long term licensing (and or patent purchase) agreement? Their corporate office in Fremont CA is only 20 miles away from Google's corporate campus in Mountain View CA. ============================================================ I plan to take a small position in ACTI and maybe Google and ACTI can discuss their needs on security technologies. I will be watching to see if ACTI announces a new (1) marketing manager and (2) if they release an "open source" software/hardware security product. Any discussion or marketing agreement with Google would be a home run for this company. EKS

To: Paul Senior who wrote (22288)	10/27/2005 9:58:53 AM
From: E_K_S	Read Replies (1) \| Respond to of 78763

ActivCard lowers Q4 reveue view (by 30% from $12 million to $9 million). I am unclear if management has everything under control at this point. A new CEO came on board early this year (after another one previously resigned after on board only three months). Seems like there is still turmoil at the company. The positive is that their revised revenue number is still 30% higher from what the company did in 2004. I have adjusted my GTC order a bit lower and looking to pick up a small starting position. Products and technology still very good and the company has sufficient cash and assets to keep operating. EKS