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Technology Stocks : Ultradata Systems INC (ULTR) -- Ignore unavailable to you. Want to Upgrade?

To: opalapril who wrote (176)	12/22/1998 12:33:00 PM
From: JohnM	Read Replies (1) \| Respond to of 193

welll, i'm glad there are at least some folks still following this thread. some thoughts on Talon: the Talon investment is (ULTR's 19% stake) has already quadrupled in value and none of it is priced into the stock (that's like making $0.26 per share). there is little doubt ULTR will buy half of this company in the coming year for a total investment of $1.7 million (all financed with cash on hand). with $8 million in 1998 sales, and a projection for $16 million in 1999 sales, Talon should be worth anywhere from $10 to $20 million, and half of that will be owned by ULTR. my current projection is that ULTR's interest in Talon will be worth at least $1.50 per share -- but more likely $3-4 per share. however, none of this is currently factored into the value of the stock! i think some investors may be bailing on ULTR because of slow T*Star sales, and a general feeling that automotive GPS (as a category) did not take off in '98, the way a lot of folks were hyping the product category earklier in the year. Trimble, Lawrence, and Garmen have all suffered losses in recent quarters. at the same time, Talon is sucking up orders for its high end marine GPS products. with a $1.7 million order already in hand for '99, Talon is likely to sell plenty more, because it is beating the pants off the competition. due to ULTR's relationships with chip manufacturers and ability to place volume orders, Talon is able to buy chips and make its marine products at much lower costs. while at the same time, talon makes a high end plotter with GPS accuracy to 2m versus the 50m accuracy of its competitors' products. better product for less money (or with much higher margins). Talon's success is a no-brainer.