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Technology Stocks : Warp 10 Tech. (WARP)

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To: David Moyer who wrote (1010)7/10/1998 9:15:00 AM
From: Ted M  Read Replies (4) of 1164
 
Profit taking did occur yesterday and volume was large. However, it closed virtually unchanged for the day so I too think their is more room for an upside move, although we may see the 2's today. You alluded to some of the following points earlier but I thought I would reiterate a couple of reasons this caught my eye recently.

Of course, the news itself sounded very promising. While their were 40 companies listed in the Hewlett Packard alliance only 3 were listed as internet technology partners, one being Warp10. ModaCad, another tiny company that has already had a good run over the past year and another company I'm unfamiliar with. Being one of 3 in this area sounds good.

Second, the volume that came in was several days after the announcement and was not on a Monday, so I believe one or two big buyers were buying in because they see big things ahead.

Lastly, this company has a terrible history in terms of producing, yet they have over time reduced their losses to small amounts (.01) in most recent quarter. While revenue has been very low, the expenses are almost zero! If this new alliance results in significant revenues it would appear that the earnings per share could take off significanty even with the fairly large number of shares outstanding.

All of the above is of course speculation, but the 3 items together make this one at least worth a serious look IMO. The proof will be in the numbers. Best of luck to all.
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