Mike, looking at the Notice of Pendency of Class Action against CAI Wireless Systems and others, it reads:
"According to the complaint, as a result of defendants' materially false and misleading statements, the price of CAI Wireless securities was artificially inflated throughout the Class Period."
Now, please take a close look at GKM's recommendation on September 26, 1996:
SEPTEMBER 26,1996
GKM MORNING MEETING NOTES-9/26/96 Thursday
09:59am EDT 26-Sep-96 Gerard Klauer Mattison & Co. GKMAM CAWS MOT
LU BEL NYN PAC
MORNING MEETING NOTES
September 26, 1996
CAI Wireless Systems/CAWS BUY ARTHUR NEWMAN
(212) 885-4054
___________________________________________________________________
Price 52-Week Earnings Per Share P/E Ratio 12-Month
09/25/96 Range 03/95A 03/96E 03/97E 03/96E 03/97E Target
7.00 17.50-6.25 (0.93) (1.73) (2.50) N.M. N.M. 18
___________________________________________________________________
CAWS*+-- Bells Extend Agreement Until Sept. 97--BUY
o Bell Atlantic and NYNEX have both elected to extend the period
during which they may exercise their option to operate a CAWS
system.
The option period is now extended for one additional year, to
September 29, 1997.
o We expected that the Bells would choose to extend their option
period for one additional year (see our First Call note dated
September 25, 1996). BEL has constructed an office and hired staff for the VA system, and, last week, Tele-TV continued to discuss its launch plans with enthusiasm. We believe the Bells will launch
Norfolk, VA and Boston in calendar 2Q97. We maintain our BUY rating on CAWS with a target price of $18.
INVESTMENT CONCLUSION
Multiple demonstrations have provided clear evidence that digital
wireless cable works. However, commercial implementation by CAWS
and BEL continues to slip, delaying the period when CAWS should begin
to increase revenues and eventually become EBITDA-positive, which
could yet adversely impact our financial forecast. Nonetheless, PAC
should provide investors with near-term proof of the viability of digital wireless cable and the competitive impact on hardwire cable.
Furthermore, we expect that a successful launch by PAC would likely inspire BEL and NYN to act more rapidly and lift the stocks of CAWS and other wireless operators. CAWS remains rated BUY.
*Within the past three years, Gerard Klauer Mattison & Co., LLC was the manager (co-manager) of a public offering of the securities of
this company and/or has performed other banking services for which it has received a fee.
+Gerard Klauer Mattison & Co., LLC is a market maker in the
security of this company and may have a long or short position.
First Call Corporation - all rights reserved. 617/345-250
---------------------------------------------------------------
The following three statements should have jumped out at you:
1) "We maintain our BUY rating on CAWS with a target price of $18."
2) "Multiple demonstrations have provided clear evidence that digital wireless cable works."
3) "Gerard Klauer Mattison & Co., LLC is a market maker in the
security of this company and may have a long or short position."
Do you not think, perhaps, that it's the MMs and their analysts who are primarily responsible for "hyping up" the stock? Shouldn's they be the ones getting sued? |
