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Technology Stocks : MXWL Maxwell Tech-Food Zapper kills bacteria FDA OK'd -- Ignore unavailable to you. Want to Upgrade?


To: Richard N Lambert who wrote (410)4/3/1998 12:13:00 PM
From: Jerryco  Respond to of 509
 
Richard, I am kind of rushed today so I will have to put off responding to your last post, however here are some interesting thoughts from Moneymgr on the Motley Fool tread regarding the Primex acquisition:

Subject: Re: Small Acquisition, NO, GREAT ACQUISITION
Date: Fri, Apr 3, 1998 12:03 EST
From: MONEY MGR
Message-id:

This is really a great acquisition. Potashner should be able to earn at least 8% net margins after taxes. 1997 sales were $17 million. A 20% increase in sales for 1998 would give you sales in excess of $20 million. This would yield net income of $1.6 million or $.18 a share. For this the company is giving up 5% on $10 million or $500,000 or $.06. This net gain of $.12 should be capitalized at 25 which should yield a $3.00 per share increase in
the Iprice of the stock. In addition to the EPS gain MXWL solidifies itself as the world leader in purepulse technology. That makes the division a great IPO candidate.

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By the way Rich, I have posted your last thoughts to the Motley Fool thread.

Jerry



To: Richard N Lambert who wrote (410)4/4/1998 2:37:00 PM
From: Jerryco  Read Replies (1) | Respond to of 509
 
Rich, I also think there is a great possibility that Maxwell is considering having much of its manufacturing of ultracapacitors on a large scale basis accomplished through a deal with Siemens. This would account as you said for the use of their funds for acquisitions needed to cement their infrastructure and acquire technology needed to supplement their own. It would seem they are confident of this deal going through (only a letter of intent announced to date) since we can see the acquisitions starting to take place which will consume much of their cash (excludes acquisitions for stock of course). As for your scenario of how this came will come about, your guess is as good as mine. If your facts are right, you make a plausible case.
Volume still good, stock holding in a narrow price range. Hopefully the availability of stock at this price will soon be exhausted and we can move to higher prices. Looking for the right announcement to start up the engine.

Good luck,

Jerryco