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Technology Stocks : RadiSys Corp
RSYS 1.720+0.6%Dec 11 4:00 PM EST

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To: Sam Golden who wrote (587)4/24/1997 5:41:00 PM
From: Richard Karpel   of 1472
 
>>>I'll willing to stick my neck out and say youll get a least a 5 point pop tommorrow. Anybody careto differ with me?<<<

I hope you're right, but ....

Last quarter RSYS beat estimates by a similar percentage (I think it was 46 cents vs. a 42 cents estimate; I also seem to recall that they had 10 design wins last quarter vs. 9 this time around) and the stock tanked, shedding some ridiculous amount like $12. Of course, that was also the day they dropped the bombshell about the SEC investigation. So, as long as they don't drop anymore bombshells in the conference call, we probably won't see a $12 decline tomorrow.

The most important factor will be the overall trend of the market, and unfortunately, this market is still sick, especially with respect to small-cap tech stocks like RSYS.

I'll tell you what WOULD send the stock up $5 (or more) -- an announcement that the SEC investigation has been completed and RSYS has been completely exonerated. Unlike some other folks on this thread, I don't think this is a dead issue yet -- at least not in the mind of the market, and the market determines the price.
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