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 : Trimble Navigation -- Ignore unavailable to you. Want to Upgrade?

To: SKIP PAUL who wrote (1940)	12/5/1997 7:46:00 PM
From: Robert A. Sutherland	Respond to of 3506

>>Ashtech has been profitable at least since Boesenberg >>took over (1994, according to Orbital release).. can >>Trimble make that claim?< >It certainly can. Between 1985 and Sept 1997 Trimble >made $7,904,000 net Income, and $245,904,000 before R&D. So between 1994 and now, with all of the new competition, Trimble has been profitable? >Boesenbergs strategies produced good short term results >but not so good in the long run as we are seeing this sellout >to a company like Magellan for a pittance ?? We don't know what the sale structure is, so how can you call it a pittance? How do you know shareholder equity hasn't improved since you don't know the valuation used? This is not a sale, it's a merger, and it's important to realize that the Ashtech management is assuming control. >Robert, you seem to be lumping Orbital and Magellan together. >There is a big difference between a wholly owned company and > partially owned company. Orbital already has debt equity ratio >of 52% and has a very capital intensive business with very little >excess cash flow. I don't see them providing capital to Magellan. I suspect you may be correct, which is why I expect some restructuring at Magellan. But I don't lump Magellan with Orbital. Though in the past Orbital has absorbed the losses(debt) associated with Magellan.