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Technology Stocks : ULTK-Ultrak -- Ignore unavailable to you. Want to Upgrade?

To: David K. who wrote (320)	12/5/1997 11:31:00 PM
From: buzzcut	Respond to of 393

ultk not participating in the latest rallies. this is not good is it?

To: David K. who wrote (320)	12/6/1997 12:45:00 PM
From: michael c. dodge	Read Replies (1) \| Respond to of 393

The revenue growth is only from acquisitions. Their businesses held more than 12 months are not growing in revenue, because the industry is fiercely competitive......they have still a slug of cash from the secondary offering, and they are positive cash flowing from operations. But, when the acquisition cash runs out, the revenue growth will decelerate. They cannot at this time acquire solely for stock, due to the depressed stock price. If they burn up their cash hoard in acquisitions, and then go into their $40,000,000 line for still more acquisitions, they will materially damage their balance sheet, and their capacity to withstand a worldwide recession. If they overshoot thru corporate hubris, it could be serious or fatal two or three years from now. They do not seem to have recognized the possibility of a slowdown. Nevertheless, they are actually buying in a significant % of their stock (maybe 6%-7%), and they do have a plan to provide security systems around the world, just as retailers are trying to make distribution around the world. Finally, they have not effectively digested all they have now swallowed; why look for more trouble, until you have fully integrated all the problems you have now assumed ??? All just my opinion. I would like to buy the stock, but have passed it over three or four times the last six months, because of these concerns.