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Technology Stocks : NETsilicon NSIL (ipo)

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To: Bryon Bothun who wrote (81)11/19/1999 10:44:00 PM
From: Jack Hartmann  Read Replies (1) of 161
 
<Why would he set a target that is still a 50% discount to the peer group?
So you can beat the price target. Nothing outrages clients than to miss the target price or upcoming earnings. Merrill Lynch caught heat when they missed the INTC earnings by four cents. Bad media press followed.
I feel that the warning by the company was to calm investors down. If the warning wasn't there, a runup to $30 and back down to $17 could have happened if the following quarter showed the growth rate wasn't 30% Q to Q.
This stock dropped to $10 after the quiet period. I'm sure that CIBC and Piper got some calls on the questionable Buy recommendation at the time. Now that it is at $15, A strong buy is a safe bet.
Jack
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