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Technology Stocks : Semiconductor Packaging Materials (SEMX)

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To: Ed Newman who wrote (6)1/4/1997 3:36:00 PM
From: Josh Frankel   of 33
 
Ed - In the 10 years I have been a Registered Representative I could probably count on the fingers of one hand the number of times a horrendous quarter was an isolated event followed by a resumption of phenomenal growth. It just doesn't happen - one bad quarter begets another, just like one good quarter usually bodes well for the future. Hence, in my opinion, the fundamentals of SEMX are shot - Raker's positive forward-looking B***S*** statements notwithstanding. Who's going to buy this stock? Where's management's credibility in view of what just happened? It's NOWHERE, that's where it is.

You have yet to explain to me how the Company can justify granting an IBD interview and how Raker can justify putting up 20M shares at exactly the right time.

I have NEVER spoken to a securities attorney before about a possible action against a company and/or its officers - but this is so incredibly blatant. I don't know how you can gloss over the sequence of events I've laid out. The attorney I've contacted is a partner at a very prestigious firm - he needs to help me here like he needs a hole in the head. He's doing me a favor and thinks the whole thing stinks, and I agree.

You should give some thought as to whether the management of SEMX (or any company, for that matter) has your best interests at heart over their own. I would think NOT.

Lastly, with the stock at 10, according to your rule, no one's going to buy it over 12 1/2 (that would be a 25% run up in price, above which you say not to buy). So, how is the stock going to recover its loss from a 17 7/8 high if it's going to hit resistance at 12 1/2 ???

Josh
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