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Technology Stocks : ACTM $100 Million Cable Modem Contract with MOT -- Ignore unavailable to you. Want to Upgrade?

To: Alfredo Nova who wrote (493)	2/25/1998 10:15:00 PM
From: jeffbas	Read Replies (1) \| Respond to of 1250

Alfredo, with about $29 in sales per share and perhaps the capacity to produce $35-40 scheduled to be in place this year, and $6 tangible book value before this problem, what do you think the enterprise value to an acquirer would be? Remember, Pino can decide with a phone call to sell out or not, since he owns over 1/2 the stock. Does this company have real value to another player in the industry? Paul K, help please.

To: Alfredo Nova who wrote (493)	2/25/1998 10:23:00 PM
From: Rob Preuss	Read Replies (3) \| Respond to of 1250

Paulo pointed out that the maximum theoretical impact of an inventory shorfall is $6.82/sh... this based on the reported value of ALL inventory at 30 Sept divided by the total shares outstanding. Its been pointed out here that a key impact of this announcement is that it shakes confidence in management and that this impact will be felt at the opening tomorrow (and will persist for some considerable time thereafter) even if they somehow rediscover all the missing inventory. A key problem with ACTM is that its been a one-horse-show with Pino owning virtually all the insider stock and calling virtually all the company moves. I believe that Pino is well-motivated (he owns so damn many shares) and well-meaning but he may just not have what it takes. A key worry now is that management will flee this like a sinking ship (NOT that it is sinking, just stinking). Could you imagine what would happen to the share price if Greenlaw left for greener pastures just now? A key hope is that Pino will make some moves to increase the depth of their management, spread the wealth (so all senior managers have a strong interest aligned with the shareholders), and perhaps even step aside...