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   Technology StocksAssociated Group / Teligent


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To: Tecinvestor who wrote (54)4/15/1999 1:35:00 PM
From: zebraspot
   of 76
 
My reasons for liking TGNT?

No takeover (I hope).

Rather, TGNT is rolling out a great business plan - their "last mile" offering of bundled telecom services just makes so much sense for small/medium businesses that it just has to be a huge success.
It is ready to roll. Competition is limited. The spectrum they own amounts to a great franchise and they got it cheap.
They don't have to acquire ROW's, dig up streets, lay expensive cables, etc., and hope that the business will come: They install their equipment only after the orders have been taken.
Profit margins should be huge. Management is superb. To date, only a small fraction of the 750,000 office buildings in the U.S. have been signed up, and TGNT is getting more than their fair share.

If you have a 2-5 year time frame, even at current prices, TGNTis as exciting a concrete business opportunity as you can think of, IMO.

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To: Tecinvestor who wrote (37)4/16/1999 1:22:00 PM
From: Tecinvestor
   of 76
 
On April 15, 1999 Legg Mason analysts Bradley Williams and Sean Butson issued a rate change on AGRPB. The report states in pertinent part:

* Raising target price on AGRPB shares to $70 from $60 and reiterating Buy rating.
* Lowering risk rating to Above-Average from Speculative due to stability of underlying securities in portfolio.
* Discount to portfolio value has expanded to near historical levels.
* TruePosition value remains as a yet-to-be realized $12 upside for investors.

This is a very good report, for all of the enumerated reasons. For those of you who are unfamiliar with Legg Mason, they have been following this stock for a long time and have issued a number of comprehensive reports on the company. I have found their research to be very good.

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To: Tecinvestor who wrote (56)4/16/1999 3:54:00 PM
From: Don S.Boller
   of 76
 
Tecinvestor: Do they (L.M.) have a site where we can go to
read their report(s) ??
TIA
Best,
Don

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To: Don S.Boller who wrote (57)4/16/1999 4:04:00 PM
From: Tecinvestor
   of 76
 
Hello, Don. Legg Mason does, indeed, have a website.

leggmason.com

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To: Tecinvestor who wrote (58)4/16/1999 4:14:00 PM
From: zebraspot
   of 76
 
As is usually the case, you can't access the research report at the site - though, they did have this (old, I guess) blurb there:

>>The Associated Group, Inc. * (AGRPB-$55 3/4) is a diversified communications company that focuses on the
identification and development of new technologies and emerging markets. The company is well-capitalized with
substantial holdings in other communications companies including AT&T and Teligent. We believe the recent closing
of AT&T's acquisition of TCI only strengthens the investment case for The Associated Group. Further appreciation
in AGRPB shares is likely as the True Position investment garners increased visibility in 1999 through market
launches and technology developments. We remain bullish on AGRPB and reiterate our $60 target price. (Williams)<<

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To: zebraspot who wrote (59)4/21/1999 4:04:00 AM
From: zebraspot
   of 76
 
WSJ story on TGNT and the sector:

post.messages.yahoo.com

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To: Tecinvestor who wrote (56)4/27/1999 8:29:00 AM
From: Tecinvestor
   of 76
 
On April 26, 1999, eleven days after having raised the target price from $60 to $70, Legg Mason analysts Bradley A. Williams and Sean Butson reduced it to $60. Legg Mason set forth the following:

* Lowering rating on AGRPB due to the increased valuation risk to underlying portfolio posed by AT&T bid for Media One.

* Downside risk to AGRPB valuation is tempered by diversification of the securities portfolio, but investor sentiment toward Associated Group will likely be limited near-term.

* Several positives continue to offset the negative shift in the AT&T opinion, which may provide opportunistic investors an entry point if the discount to net asset value widens considerably.

* Reducing target price from $70 to $60.

IMHO, Legg Mason dropped the ball on this one. I think they pulled the trigger too quickly in their assessment of T's bid for UMG, which I perceive as a long term positive. Moreover, I have not yet given up on management's efforts, if any, to rectify the problem of the huge discount to NAV.

AGRP is scheduled for a shareholders' meeting on June 3, 1999. I am hoping that by then, we will see some positive news flowing from management.

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To: Tecinvestor who wrote (61)6/1/1999 10:56:00 AM
From: biffpincus
   of 76
 
Thats all she wrote ... Associated Group sold ...

The street apparently isn't too enthusiastic with the deal ... AGRPA down 5 / AGRPB down 1 ... market capitalization before deal was about 3 1/2 billion ... and finalized deal was for 3 Billion ... looks like the family (Berkmans) needed some money ... biff

p.s. TGNT is up about 9 on the deal

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Liberty Media to buy Associated in $3 billion deal

ENGLEWOOD, Colo., June 1 (Reuters) - Cable TV programmer Liberty Media Group said Tuesday it would buy cellular phone and telecommunications company The Associated Group Inc. in a $3 billion all-stock deal. Liberty Media, a leading cable TV programmer which belongs to AT&T Corp. , said in a statement that it would assume $187 million of Associated debt.

Liberty Media said the companies had signed a definitive agreement for the merger. The deal is structured to be tax-free to Associated shareholders. Associated co-founded and holds a roughly 41 percent interest in Teligent Inc. , a provider of broadband communications services to small and medium-sized business customers.

Associated shareholders will get 25.89 million shares of Class A Liberty Media Group common stock, or 51.78 million shares following a two-for-one stock split on June 11.

Associated stockholders also will get 19.7 million shares of AT&T Corp. Common Stock. They will get 0.6206 shares -- 1.2411 shares post split -- of Class A Liberty Media Group
common stock and 0.4727 shares of AT&T common stock for each
share of Associated Class A and Class B common stock.

((--Ian Simpson, Wall Street desk, (212) 859-1879))


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To: biffpincus who wrote (62)6/1/1999 4:07:00 PM
From: zebraspot
   of 76
 
Seems like we got sold a bit of a bill o' goods by the analysts, etc. that told us this co. was worth $80 plus. (Or, are the Berkman's selling too cheap? --- doubtful). Glad I own the B's, anyway.

I'm holding on to get at least $65 for it. These new arb situations usually swing up and down ~5% in the first week or so.

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To: zebraspot who wrote (63)6/2/1999 2:11:00 AM
From: biffpincus
   of 76
 
<<I'm holding on to get at least $65 for it. These new arb situations usually swing up and down ~5% in the first week or so.
>>


It was kind of interesting how no one could figure out the price paid and the premium offered (which was next to nothing in the B's and nothing at all in the A's) ... just subtracting the market cap of Associated from the Liberty Media offer could (and did) make some easy money for the quick fingered investor in the early trading this morning ... was a crazy day to risk buying anything today though ... we just as easily could have ended 500 points down today based on news and technical fundamentals ... apparently the Berkmans see no profitable future in Trueposition (which is surprising and telling) ... I will be very interested to get feedback and analysis of this deal from folks in the know ... but basically, this deal was not that impressive and thus, not profitable to investors, and I was surprised by it ... biff

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