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 : Avant (AVNT) -- Ignore unavailable to you. Want to Upgrade?

To: santhosh mohan who wrote (1570)	11/24/1997 2:59:00 PM
From: PMylnar	Read Replies (3) \| Respond to of 3441

AVNT. 1)Friday's late selloff was caused by selling in advance of the story about AVNT losing its appeal on the ArcCell injunction. The subsequent rally is occuring because the longs and shorts both realized very quickly that this was an expected event (appeals are seldomly overturned). 2) Takeover speculation. If a merger or takeover were to occur, my guess is that SNPS would be the likely buyer/partner given thier product portfolio. Moreover, I just read on Dow Jones that CDN has signed a distribution/use agreement w/Ambit, a small privately held company that competes with SNPS in the synthesis arena. Maybe CDN is trying to muscle into SNPS's space. 3) Fundamentals. If the legal battle w/CDN is hurting AVNT, it isn't showing up in AVNT's financials except in thier legal expenses. I looked at AVNT's 3q 10-Q this weekend on the web, and although AVNT reported EPS of $.33/s (vs. an estimate of $.29/s from Wall Street)on an operating basis in the 3q97 that included about $2.5mm of legal expenses in the quarter. If one were to add those expenses back, to get a true sense of the profitability of AVNT's business, AVNT would have earned over $.38/s. IMO.