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Technology Stocks : Actel [ACTL] -- Ignore unavailable to you. Want to Upgrade?

To: William Grady who wrote (616)	2/17/1999 3:18:00 PM
From: Tom Todd	Read Replies (2) \| Respond to of 674

Well, they got the milk, why pay for the cow? They have an exclusive marketing relationship for Gatefield products. The decision to buy the rest of the company would probably be made on balance sheet vs. P&L considerations, i.e. if the resell relationship results in margins that drag down Actel's overall margins, then buying it and fabbing it under ACTL's cost model would make sense. At this point though, the revenues are probably so low as to make little difference to the bottom line. Do I think the product adds to ACTL's breadth? Of course! They need to get more products sooner if they are to ever keep up with the big boys... By the way, I was able to get the 13 G/A filing from yesterday. Vinik and his group appear to have increased their total holdings from 17.4% in December to 19.7% yesterday. Why that would knock the stock down is beyond me. The insiders all filed their annual form 5 statements of ownership yesterday as well, with no real surprises I could see... -tt

To: William Grady who wrote (616)	2/22/1999 8:24:00 PM
From: easytarget	Read Replies (1) \| Respond to of 674

Hi I'm a long term GATE follower. GATE may be trading at .85 now, but the board is controlled by Idanta, a VC that is unlikely to be willing to sell for anywhere near .85 per share. Volume is VERY low, and none of the major holders are selling at the moment. Only 6 months ago, Actel paid $12M for preferred shares equivalent to 3 million common shares of GATE plus a small services division that generates very little revenue. (Most of GATE's services revenues comes from royalties from the maintenance division that they spun off.) If you're generous and allow $3million for the services division, that's still $3 a share for a small (7%) equity position in GATE, so figure at LEAST $125million for a complete buyout. EZ