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Technology Stocks : Vertel (VRTL) 10xbagger in the making

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To: Bob Davis who wrote (192)6/13/1999 9:17:00 PM
From: Dennis J.   of 465
 
Hi Bob,

I am a VRTL owner since late 1997, when it was about $5. All down hill since then. When it went under $2, I began to treat it as a perpetual option (which it is).

Last fall, insider Jef Drazen and an investment fund opted for about 2 million shares at $1.50, to allow VRTL to make a strategic acquisition. I'm sure they were and are still looking for much more in return. Drazen has recently joined the board of Vertel, probably to become proactive. I view this move as confirming that the acquisition will lead to better times for Vertel. He would not likely join the board, if it were truly failing.

You will need to check into the direction of this company, given the new subsidiary. I think it is away from TMN, as we once knew it, and more likely towards uses of high-speed modems such as ADSL, and perhaps in private networks.

I don't have the time or energy to research Vertel, but am riding with the insiders for a comeback. The reward could be a stock that wants to go to $10 again. But no predictions.

Perhaps management will speak with you. It cannot hurt to try. They still are saying very little to the smaller shareholders. But surely, some investors know what is happening.

Good luck.

Dennis
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