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Technology Stocks : Boston Technology - BSN

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To: Ron Dior who wrote (85)8/10/1997 3:25:00 PM
From: Ray DaSilva   of 138
 
Ron,

The price action in the stock may be related to the Justice dept. requesting more info. on the Lucent-Octel merger. The stock has been weak since the merger announcement. Guess the street is worried about the affect on the relationship with AT&T. Last quarter, BSN had strong domestic growth (deal with AT&T) with a decrease international sales, which is the exact opposite of most of the other major VM vendors.

The price and option action in the last week does give some indication of positive earnings, but the large insider selling and deterioration of the technical indicators are the negatives. I may sell half my position if the stock weakens in a strong market.

Ray
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