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Technology Stocks : RomTech (Nasdaq: ROMT)

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To: JEFF CHAPMAN who wrote (54)11/25/1997 8:52:00 PM
From: MENSO  Read Replies (1) of 427
 
>>> A cynical person might think that in order to meet the NASDAQ listing requirements and preserve the company, insiders are buying shares and putting out rosey press releases related to forward earnings expectations <<<

This is true, Jeff. A "cynical person" (or two or three or more) is what we need on this thread because RomTech indeed looks too good to be true...

>>> and perhaps one should closely scrutinize earnings going forward to account for increases in receivables or inventory so that investors don't get burned <<<

Oh, I think you can rest assured that a lot of people will be doing precisetly that; but thanks for the heads up anyway...

>>> when the share price doubles and insiders start excercising options now worthless based on share price and sell shares, only to see the stock price plummet later as earnings don't follow through. <<<

Can I ask you something ? Assuming that this scenario was in fact what the company's officials were up to -- which we can not entirely rule out -- what do you suppose is the likelyhood that they would be able to double share price without actually reporting a nice profit in January ?...

Please don't get me wrong, I am not saying that this can not be the case. I truly don't know. Everything is possible I guess. But if this was in fact the company's plan, then it seems to me that it would be bound to fail miserably...

Doesn't it seem that way to you too, Jeff ?...

-- LeoOorts@compuserve.com
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