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Technology Stocks : A.T. Cross Company (Amex: ATXA) -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (7)	4/11/1998 4:38:00 AM
From: Gus	Read Replies (1) \| Respond to of 21

Here's the Gene Marcial (Businessweek, Inside Wall Street 4/20/98 issue) item on ATXA... DON'T CROSS OFF CROSS Since 1952, when A.T. Cross (ATX.A) introduced its gold-plated ballpoint pen now synonymous with the Cross name, the product had been a huge success--until 1995, when sales peaked. And after hitting a high of 41 in mid-1996, its stock has since slid downhill, closing at 10 5/6 on Apr. 7. Earnings have followed suit, falling from 80 cents in 1995 to 40 cents in 1996 and a loss of 26 cents in 1997. End of the line for Cross? Value investor Mark Boyar thinks not. He says Cross is one of the best bargains around, so has accumulated a big stake. Two factors whet his appetite. Cross has launched new computing products, including CrossPad--with IBM as its partner. The CrossPad, designed by Cross and IBM, transforms how users store, organize, and share notes by writing in ink on a pad and unloading the handwriting directly to a PC. And there is a buyout angle: With the family of Chairman Bradford Boss and CEO Russell Boss owning 100% of Cross Class B stock, which elects two-thirds of the board, a friendly buyout could be easy to achieve--if a serious suitor comes along. ''There are no buyout rumors, and the family claims no interest in selling,'' notes Boyar. But the family might be enticed by a tax-free stock deal, he argues, with the likes of Fortune Brands, formerly called American Brands before it got out of the tobacco business. With its famous name in pens and new computing products, Cross could be a compelling acquisition for Fortune, a global consumer products company, says Boyar. Given its ''solid consumer franchise, a strong balance sheet, significant cash flow-generating abilities, and new computer products,'' says Boyar, Cross has an intrinsic value of 28 a share. A Fortune spokesman wouldn't go beyond saying the company continues to look for acquisitions. Cross CFO John Ruggieri says the company is investing heavily in new products to turn it around. Cross, he adds, is not for sale. BY GENE G. MARCIAL