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Microcap & Penny Stocks : MCLL Metrocall

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To: Bipin Prasad who wrote (207)2/11/2000 11:07:00 AM
From: RGM  Read Replies (2) of 266
 
I have been noticing your posts on MCLL this week. I am in the telecommunications business and I am short MCLL because it is simply overvalued.

The analyst from First Union during the interview yesterday said MCLL was "pretty fairly valued". First Union has a buy or 2 rating on MCLL when they were in the $2 range.

First Union was probably trying to get some bank business from MCLL by having their analyst give them a 2 rating.

Anyway, the reason why they haven't changed their buy rating is because they want to sell their client's holdings in MCLL at these overvalued stock prices as are the other brokers with buy ratings on MCLL.

Look at the time and sales tape on Friday mornings. You will notice a whole bunch of block sales on MCLL.

If you explore MCLL's products on their website, they are already offering most the the services that this new joint venture shall offer. They are simply going to package it together under a different brand name, which to me is just marketing b/s.

AETH will probably use this joint venture to offer new services that may fit into the paging platform as they are doing with other platforms and distribution channels.

You obviously are not an expert on the telecom industry nor have you done any competitive analysis homework.

My advise to you is to sell now and take a small loss rather than a substantial loss several weeks from now.

The only reason why I am advising you to sell your long is that I do not like to see any SI members take serious losses on their stock transactions.

I rarely communicate on SI now as I am involved with a private non-internet investment group.

I would suggest that you follow Tim Luke, Shadow, Tom Hua, Zeel and few other experienced folks on SI for future guidance in your investment decisions.

Good Luck,

Rob
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