Vartan, do you have any information on GANDF (Gandalf Technologies) which trades on the NASDAQ and the Canadian exchanges? Been beaten down from $20 just a few months ago, in a turnaround situation, and getting some very positive press now... popular private analyst Johnathan Hamilton just posted this report -
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REPORT: Gandalf [GANDF] Poised For Explosive FY97 Growth
For Release October 31, 1996
Summary
The equity shares of Gandalf Technologies, Inc. have been battered heavily over the past eleven months; seeing share prices decline from a 52-week high of $20 1/4 to levels under $4 in recent days. This comes in response to Gandalf’s inadequacy to cope with increasing competition and declining market share; pending a successful restructuring campaign, however, Gandalf has the opportunity to evolve once again into a market leader in the explosive telecommunications/networking market. This restructuring campaign has been instituted, and a turnaround is presently under way which will be reflected in third quarter fiscal year 1997 earnings and upcoming product announcements. Technical indicators show us that Gandalf stock is severely oversold at these levels, and smart money is now accumulating the stock to reap gains from the successful restructuring campaign. Gandalf is also a prime target at this point for consolidation by other firms in its sector considering its depressed share prices; recent options trading indicates a deal may be in the offing in the near future anywhere between the $6-10 range. Naturally, this is pure speculation, yet along with the results of successful restructuring it forms the basis for extremely solid support in Gandalf shares at these panic-driven price levels.
Company Description
Gandalf designs, manufactures, markets and services a broad line of computerized communications systems, software and hardware equipment that allow users to communicate between computers from multiple vendors and networks.
The Three M’s For Success: Management, Marketing, Momentum
Management
There are few questions in the industry about Gandalf’s superior technology, which has consistently won top awards and has received rave reviews over the past few months. This has, however, been marred by management’s inability to market this technology and distribute it efficiently. Gandalf has taken several important steps to remedy this problem. Richard Bustos, a highly competent and aggressive manager has been named the new President and Chief Operating Officer under Chairman and CEO Tom Vassiliades. Vassiliades himself was formerly CEO of Bell Atlantic Business Systems and a 32-year IBM veteran. Vassiliades and Bustos make a dynamic management team, targeting growth in all of Gandalf’s markets and emphasizing cost efficiency. Both have a keen understanding of the benefits of consolidation as well, and will aggressively court suitors if necessary. Also of note is the addition of R. Steinburg to management, who holds the position as Vice President of United States Channel sales. Steinburg worked with 3Com for over 19 years before joining Gandalf, and understands how to market Gandalf’s superior technology to potential customers.
Marketing
Another gripe of shareholders is Gandalf’s inability to gain market recognition for their technology - again, this is focus number one of the new management team under the restructuring plan. Gandalf has hired Burson-Marsteller, the world's leading communications and counseling firm, to support its worldwide communications programs in a professional capacity. Wall Street is already becoming attentive to Burson-Marsteller's P.R. efforts, as displayed in the over 40% price gain in Gandalf shares on extremely heavy volume of 3 million shares traded on October 30, 1996 subsequent to a news release regarding Gandalf's efforts to integrate 56Kbps modem technology into its award winning Xpressway(R) line of products.
Momentum
Product momentum is the next key ingredient we will examine; as of October 1996, Gandalf has shifted its focus to the hot Internet market, the one responsible for much of its competitors' growth. By targeting this market and introducing superior technology, Gandalf will position itself to retake market share from current leaders such as Ascend Communications. In particular, Gandalf will begin extensive production and delivery of Express Central switches to Internet Service Providers (ISP's) around the world; preliminary market research conducted by Gandalf indicates tests on their dialup analog and ISDN switches have been extremely positive. This award winning product is considered to be superior to that of rival competitors such as Ascend - some revolutionary features include a full chassis built for expansion, with dual power supplies and hot card swapping for reliable performance. This architecture also lends itself to easy adaptability, which is key in the rapidly evolving telecommunications industry. Perhaps most important is Gandalf's built in encryption technology for security purposes - this is no doubt one of the most sensitive Internet-related issues today.
Time To Buy Gandalf Shares?
Third quarter and fourth quarter fiscal year 1997 is a very exciting time for Gandalf; and as of late October technical improvement in Gandalf's trading activity suggests a positive trend is imminent; the October 30, 1996 rush to accumulate Gandalf shares on positive news is a classic sign of a bottom and institutional interest. Smart money has been accumulating this stock on the way down from levels at $7 and under according to volume analysis; retail investor panic has allowed for a “washout” condition in the stock as shares have been transferred from weak hands to institutions.
Internet Research
We encourage you to conduct your own fundamental and technical research on Gandalf; material is readily available on the Internet. Here are some starting points:
Website URL Address - Description
gandalf.ca - Corporate Website
zdnet.com - H&Q Coverage Anncmt.
techweb.cmp.com - Information Week Article
pcmag.com - PC Magazine Award Article |
