Lone Star Asset Management Announces Research Opinion on All Communications Corporation.CARROLLTON, Texas--(BUSINESS WIRE)--May 26, 1999-- Reiterates Strong Buy Rating; Raises Price Target by 50% To $12 Per Share Lone Star Asset Management (LSAM LSAM Lunar Surface Access Module LSAM Logistics Support Analysis Modeling LSAM Local Splice Alignment and Measurement (FOC) LSAM Logistics Support Alternatives Model ) analyst Bill Mauerman recently issued an update on All Communications Corporation ('AllCom') (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:ACUC ACUC Animal Care and Use Committee (aka Institutional Animal Care and Use Committee, IACUC) ACUC Animal Care and Use Committee ACUC Associació Catalana d'Uròlegs de Comarques ACUC The American Canadian Underwater Certifications, Inc. ), warrants (OTC BB:ACUCW), reiterating his Strong Buy rating and raising his price target to $12 per share. "AllCom is positioned to be a major beneficiary of the tremendous growth we foresee in the videoconferencing and video streaming marketplace." stated Mauerman. "Many Fortune 1000 companies rely on turn-key solutions providers like AllCom to help them choose, implement and manage the equipment and technologies offered by Polycom (Nasdaq:PLCM PLCM Product Life-Cycle Management PLCM public long code mask PLCM Public Land Code Mask ), ViewCast.com (Nasdaq:VCST), RealNetworks (Nasdaq:RNWK RNWK Real Networks (stock symbol) ), Broadcast.com (Nasdaq:BCST BCST Broadcast BCST Bachelor of Computer Science and Technology BCST Battle Command and Staff Training BCST Biodynamic Craniosacral Therapist ), INTERVU (Nasdaq:ITVU), and others for these applications. In his update, Mauerman discusses how: -- Over the past year AllCom has emerged as one of the top three distributors of Polycom's award winning ViewStation videoconferencing product line, contributing to AllCom's impressive revenue growth rate of 91% for 1998. Polycom's recent launch of its StreamStation companion product, which (utilizing RealNetworks' video streaming technology) allows real-time and on-demand streaming of videoconferences over the Internet, should be well received by the marketplace and accelerate AllCom's already impressive growth rate. -- During late 1998 AllCom and Sprint Corporation (NYSE NYSE See: New York Stock Exchange :FON) jointly developed Sprint's 'Video Partners Program'. Launched in Q1 1999, this program allows AllCom to offer Sprint's network and videoconferencing services to customers at reduced rates while earning a percentage of the revenues generated by customers' usage. In a February, 1999, Dow Jones news article, AllCom's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. stated this new program alone could add as much as $0.20/share in earnings for AllCom during 2000. -- AllCom's recently signed reseller agreement with INTERVU allows AllCom to earn residual revenues when AllCom's customers use the INTERVU network to stream their videoconferences to widely dispersed participants over Internet connections provided by America Online (NYSE:AOL), Earthlink (Nasdaq:ELNK ELNK EarthLink, Inc. (stock symbol) ELNK Ethernet Link ), or other ISPs. AllCom's first customer to use this new service offering successfully held their videoconference last week, with 6 active participants and 400 other participants viewing the streamed version. -- Mauerman also believes that AllCom will soon offer its own internally developed video streaming service for customers with applications that don't require the full capabilities of the INTERVU network. -- Trading at only 0.9 times Mauerman's 1999 revenue estimates of $23 million, based on shares outstanding, AllCom appears significantly undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. when compared to USinternetworking (Nasdaq:USIX USIX USinternetworking, Inc. (stock symbol) ), which is currently trading at 42 times analysts 1999 revenue estimates of $31 million and is another company focused on building a monthly recurring revenue stream while offering traditional 'systems integration' type services. Mauerman's full update on AllCom is available, at no cost, by visiting http://www.LoneStarStocks.com/ac052499.htm The information contained herein was obtained from sources we believe to be reliable, but we do not guarantee its accuracy or completeness. All opinions, estimates, and research ratings contained herein constitute our judgment as of the date of this report, and are subject to change without notice. This report is for informational purposes only, and does not constitute an offer, or the solicitation of an offer, to buy or sell any securities. It is not a complete analysis of every material fact, and is not intended to be used as the basis of an investment decision. As of the date of this report, LSAM's principal and affiliates had a position in ACUC, and may make purchases or sales while this report is in circulation. Neither LSAM nor its principal is a registered broker-dealer or investment adviser, and this report does not constitute, nor should it be construed as, investment advice. Source: DigitalWork http://www.digitalwork.com |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion