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Technology Stocks : Vari-L

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To: Frank Byers who wrote (3)9/9/1996 10:17:00 PM
From: David Mountain   of 29
 
Frank,

Great--another "buying opportunity." Hoping to pick up profits on the low dollar/high percentage swings is a speculative game that makes your broker and the IRS money. True--if handset sales take off in 1997 VARI-L is well positioned to benefit. I just wish I shared your optimism. Many of the new license holders have no cash and no realistic hope of getting a functional network up and running soon. CDMA continues to be late, and those GSM systems that are running are being positioned as a higher priced competitor to cellular ("It's like cellular, only you get to pay for the phone")--I just don't see where 4-6 new service providers are going to get enough customers to be viable, let alone produce an explosion of handset sales that will create a level of growth that will make this a worthwhile investment.
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