Ok guys. Here's my take, as the person who a week ago said RSYS would go to 25 before it went to 55.
1. I bought RSYS today.
2. As tough as I was earlier on management, I want to, in retrospect, apologize to them. They were telling us what to expect all along, we just so busy talking we weren't listening. Myers said in Jan. that earnings might be affected by the SEA situation. Turner repeated the same message. It's hard to say we were misled.
3. The company did what it should have done (and what I told Darrell they should do, in a prior message): issue a preannouncement and make it as bad as possible. Then, like CPQ and INTC, the actual earnings will come in slightly better than the warning, and investors will be relieved rather than horribly disappointed.
4. The company, by circumstance, is now broadening its client base to OEMs less likely to be affected by SEA, and whose businesses are doing well; e.g., the telecommunications and gaming industries. (Today, the company announced its design for a unique multimedia computer for the gaming industry.)
5. The sales before the announcement couldn't have been triggered by any overt leaks by the company or insider selling. Nobody's that stupid (except maybe Tektronix, a company that's really greedy, stupid and doing poorly). Also, I've received a few E-mail messages from RSYS employess who (after making me promise I wouldn't use their names) all affirmed that management is as careful as they know how to be re leaks.
6. Once again the blame for the so-called preannouncement dumping can be laid at the lack of regulation by NASDAQ and the SEC. YOu'd never see this on the NYSE without an immediate investigation.
7. The short interests can sure cover now and get the hell out of the stock.
8. In sum, despite some gaffs that we've talked to death, the company is no less promising today than it was last week. It's product is still good, and management seems to have a handle on things. Most every company has temporary setbacks (except for MSFT).
9. Im sum, as long as you have your health, don't worry, be happy!
Burt
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