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Technology Stocks : ATC Communications ATCT -- Ignore unavailable to you. Want to Upgrade?

To: Northern Marlin who wrote (2500)	4/8/1998 8:18:00 PM
From: uu	Respond to of 2636

From the Briefing: "ATC COMMUNICATIONS GROUP INC. (ATCT) 2 11/16 +13/16. Daytraders are piling into shares of this teleservices company in hopes that the stock's impressive volume and compelling news will attract more buyers tomorrow. ATCT shares have jumped 45% on turnover of 2.4 million shares, or 13 times average daily volume. In what the company describes as the 3rd-largest merger in the industry, ATC will issue approximately 34.2 million shares of stock in exchange for IQI's equity. IQI shareholders will own 57.5% of the common stock after the merger and ATC shareholders will own 42.5% of the combined company's shares. Based on ATCT's current share price, the deal is valued at approximately $91.9 million. On a pro-forma basis, the combined company's 1997 revenues were approximately $250 million. The combined company has approximately 8,000 teleservices professionals, 6,000 workstations, and 21 call centers. It's list of clients will include American Express, AT&T, Bell South, First USA, Proctor & Gamble, Sears, U.S. West, Universal Card, and Western Union. The surge in volume will definitely put ATCT near the top of the list of stocks experiencing the largest volume increase. Because professional daytraders use this type of information to locate stocks that may perform well the next trading session, it is likely that ATCT shares will rise into the close, as today's players position for a pop in price at the open tomorrow." Regards, Addi Jamshidi

To: Northern Marlin who wrote (2500)	4/9/1998 12:42:00 AM
From: thomas odonoghue	Read Replies (2) \| Respond to of 2636

Phil...I'm going to post your notes on the ATCT yahoo thread too. Some people don't have access to Silicon Investor, so I'll take your notes to them...hope you don't mind..

To: Northern Marlin who wrote (2500)	4/9/1998 9:08:00 AM
From: Bob Myers	Read Replies (1) \| Respond to of 2636

Phil and All, I have been invested in ATCT (4000 shares avg. @ $5) for over a year. I lurk this site daily but speak up seldom, having little to add. I'm trying to put a value on the combined new Co. and this is my thinking. All comments are welcome. First I see the total shares of stock will be about 60,000,000. It is stated that the combined income for 1997 was $250M. Since this is a low margin industry lets assume that total sales in 1998 remains stable and profit is assumed to be 10% say $25M. Earnings per share would the be $25M/60M = $0.42 approx. That translates to a $6.25 share value using a 15 to 1 ratio. At a 5% profit ratio share value would = a little over $3. In my opinion this stock may run up to as high as $6 over the next few days if a trading frenzy continues as it did yesterday. After that I see it settling back to the $3 range until the merger is complete and the first combined earnings quarter gives a more definitive outlook. Then its anyone's guess. Good Luck All Long ATCT Bob Myers