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Microcap & Penny Stocks : ATEC Group. Huge growth with PE of 12.5! -- Ignore unavailable to you. Want to Upgrade?

To: Dollar Bill who wrote (1102)	3/13/1998 6:58:00 PM
From: Carl Wysocki	Read Replies (1) \| Respond to of 1298

$Bill, I'm starting to think that ATEC may become a decent trading vehicle. They do seem to have a growing base business in low margined hardware sales, which could keep a floor on the price short term. Just don't know how long it'll be until computer dealers go the way of disk drive mfgrs and component suppliers (who, us, cut prices for market share? never. Unless the other guy does it first). So, maybe, in today's environment, ATEC has an underlying value of 3-3 1/2/share, with any excess being what you call scam, and what I will generously call hype premium. Hype created tremendous runs for such Y2k nonentities as Forecross, DDIM, and ZITL. But, that was 2 years ago, when people bought the story, and revenue/eps was still on the horizon. If I were considering ATEC for the long run, I'd be concerned that management is stretching themselves into areas in which they have no expertise. This dilutes the focus on the existing business, and I'm not sure that this is a good idea. As for persuing related acquisitions, hey, they don't generate cash as it is, so they would have to issue stock, and I doubt they would find many accretive candidates. Seems like ATEC is in a trading range, and that's probably the way to play it. If you're looking for a company similar in profile to ATEC, without the hype and a bit more management credibility, plus has a real, growing services business, look at Vanstar. For my, money, that's a better play long term. It also tends to trade right now in the 11-16 range, but I'm hoping that won't last too long. FWIW, and hoping, I'm not the last in the line of greater fools. Carl