To: moby_dick who wrote (1347 ) 11/24/1999 10:11:00 PM From: moby_dick Respond to
LOL lifeisgood - here's the text for that! From Briefing.com: Ariel Corp (ADSP) 9 9/16 +6: The top-line stinks. The company is drowning in red-ink. The sole analyst we can find who follows the stock rates it a "hold"... The one thing this Cranbury, NJ-based does have going for it is a high profile among momentum players; specifically those struck with Linux fever. The stock first came across Briefing.com's radar screen on August 30 (price at the time $2 3/4), as we combed the micro-cap community for stocks likely to be swept up in the Linux tsunami. Later that same day, in a write-up of eight potential Linux plays, we highlighted ADSP as a capital hemorrhaging venture with a shabby top-line. But as anyone who has spent time tracking momentum stocks understands, explosive moves in these stocks usually have little to do with fundamentals. Such is the case with Ariel Corp, which has rocketed as much as 280% on the day (volume 30.6 mln shares), ignited by press release touting its receipt of worldwide certification for its PCI-based RS4200 remote access card set to connect to international digital telephone networks. While many of the individuals purchasing ADSP shares today will delude themselves into thinking that this certification positions Ariel to become a major player in the international market for Linux-based remote access solutions, the fact is that you are not likely to see anyone upgrade the stock or trim loss estimates in response (at least no one reputable). In spite of what the online message boards and various stock touters would have you believe, Ariel is still a company adrift. In fact, in latest quarterly filing with the SEC, the company stated its need to raise additional funds to meet obligations through the next twelve months. The company will seek to raise such amounts through a variety of options including borrowings, proceeds from equity or debt financing and scaling back operations... In our opinion, this stock continues to be little more than a trading vehicle for speculators looking to participate in Linux euphoria. As long as Linux theme remains hot, ADSP shares will remain on the radar screen of traders. But without Linux bubble to propel stock, ADSP falls off a cliff. Happy trading. - DS
