ACT - NETWORKS
On August 9, 1997, we informed our 900# and E-mail subscribers that ANET would be monitored for percentage gain performance in our 900# portfolio. For investors that favor micro-caps; that is, opportunities that have a market cap of under $150 million and been beaten to death by the momentum players; that this opportunity deserves a serious look-see! We introduced this opportunity at $13.25 on August 9, 1997.
(National Market NASDAQ - ANET)
The company develops, manufactures and markets Frame Relay wide-area network access products which support a broad range of voice, data and integrated network applications. The company is focused on three strategic markets: enterprise networks, satellite networks and carrier networks. The company’s products incorporate advanced voice and data compression algorithms, switching capabilities and proprietary integration technologies.
Reasons why we are recommending ANET:
Broker contact: Greg Nelson at 1-800-269-9460/801-265-2160.
- Has no debt.
- As of June 30th, the company had $61 million in CASH.
- Revenues anticipated to grow by at least 50% during the next few years.
- Earnings have been a weak link and, of course, that is one reason why the stock trades close to its 52-week low.
- The company announced on August 1, 1997 that a repurchase program has been approved by the board to purchase up to $10 million in stock.
- Book Value around $10.07 - so only trading at 30% above it stated BK.
- With only 9.26 million shares outstanding and a float of only 5.3 million, ANET has the potential to rocket if things begin to gel.
- Recently made an acquisition that appears to be an excellent strategic fit for future growth in the emerging telephone gateway server market, predicted to grow to over $1.8 billion by the end of 2001.
- The high for this stock was $48 during 1996 and $38 during 1997, so we really like the price. We are buying ANET 66% below 1997 high. We love it!
- The company is expected to grow by 50% during the next few years, so an estimated P.E. of 25 for fiscal 98 is not that expensive (the estimates come in at .45 - .50).
- We think that this situation has the potential to double from here.
- It remind us of OCTL when we purchased it at $16.00 and two months later it was purchased by the Lucent @ $31.50. Our point, that ANET could be an inviting target due to its technology and CASH!
TIME TO BUY not SELL.
- ANET spends quite heavily on R & D and is acquisition oriented.
- ANET, to reiterate, is out-of-favor, under-followed, obscure, fundamentally very strong, could be a takeover candidate, trading 66% below 97 high and best of all, makes us feel fuzzy inside and when that happens, you gotta BUY it!
Corporate: Mr. Flowers at 805-388-2474 (CFO).