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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: Bruce A. Bowman who wrote (4864)	6/11/1998 8:25:00 AM
From: OldAIMGuy	Read Replies (1) \| Respond to of 18929

Hi Bruce, The French version of Lucent, called Alcatel (symb. ALA), made a bid for DIGI using their stock as the medium of exchange. ALA is about 20 times larger than DIGI, so even if DIGI continues to have its cyclical pattern of business, it probably won't make a ripple in ALA's stock price. ALA's history is unremarkable except for a run-up since Jan. of this year. My analysis shows that it will take ALA (without further acquisions) close to 10 years to double book value and sales. Then there's the 1.00 BETA and the 45 Stock Price Stability ratings in Value Line. All in all, it looked BORING to me. I thought about hanging around for the final moments before the merger to garner as much as possible from the deal, but since it's a foreign company making the bit, I decided that too many things might go wrong between now and then. $29 represents a 5-bagger for me since 1991. I just decided that it wasn't worth the risk and made my move now. The other thought that occurred was that another suiter might counter the bid, but at $4.4 Billion, I wasn't sure there were that many other companies that would step up. It would have been more fun if a much smaller telecomm supplier had merged with DIGI. I then would probably have stayed with the investment. So now you know "The rest of the story.........." Best regards, Tom