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Technology Stocks : PCTH Anyone think this can take off in 1998?!! -- Ignore unavailable to you. Want to Upgrade?


To: WalleyB who wrote (1139)2/11/1998 7:35:00 PM
From: The Irish Hug  Read Replies (1) | Respond to of 1509
 
The CEO said that he believed the acquisition would add to earnings right off the bat. Generally the acquiring company dips after an acquisition announcement b/c they will have to take charges and earnings will be negatively impacted for some time. However, if the acquisition is accretive, the impact would be positive (as in this case). Also, they seem to believe that the synergies between them and this other company will make the combined entities more valuable together than separate (their five other acquisitions have gone from companies with a loss to every company having a profit now), not to mention that it will double their size overnight.