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To: KeepItSimple who wrote (85575)	11/29/1999 10:36:00 AM
From: H James Morris	Respond to of 164687

Kis, did you know that I know, you know what your talking about? The only negative comments I could ever make about you is (1) You fight the tape. (2) You couldn't throw all of your money into this mania, because you couldn't except it. (3) You don't appear to watch the elephants. What I like about you the most is (1) You tell us as you feel it. (2) You hate a Scam (3) You leave in a poor area of Palo Alto. (4) Like me, you lie about your trades.;-) << SHARES OF ARIEL (ADSP) were off $16.25, or 44%, in early trading Monday after analysts said misconceptions about the company's business were behind the stock's 244% rocket on Friday. In Friday's low-volume, abbreviated session, Ariel surged $26.25 to $37 on Wednesday's news that the U.S. Federal Communications Commission, as well as communications regulators overseas, had certified one of the Cranbury, N.J., company's remote-access products. That came after a 200% leap on Wednesday. With 49 million shares traded, it was Friday's heaviest mover on the Nasdaq stock market. Analysts cite day traders' excitement for companies that are perceived to be involved in the market for wireless Internet connections. Expectations that AT&T (T) will hold an initial public offering for a tracking stock of its immense wireless holdings helped sparked the enthusiasm. The Wall Street Journal reports Monday that investors are interested in Ariel because of the perceptions that "companies in the area of wireless Internet connections will benefit from the possibility" of an AT&T initial public offering. The problem with this scenario is that Ariel isn't in that business. Ariel makes equipment that lets users of a corporate network run the increasingly popular Linux operating system from remote locations. On Wednesday, the company got approval to sell cards in several countries that companies can use in order to run either Linux or Windows programs on their machines. "There is a misperception that remote access means wireless," analyst Anthony Elgindy of Pacific Equity told Dow Jones Newswires. Remote access means just what it sounds like: the ability of a computer to tap into a server computer that's running Internet or corporate intranet information without being attached to that server by a direct wire. Ariel's news means that Internet service providers can buy its cards to provide connections that can reach international Web sites on the cheap ? about a hundred dollars less than comparable gear from Cisco Systems (CSCO), Senior Vice President Dennis Schneider said in a press release. And since Ariel's cards can run with Linux, anyone who develops a program for the Linux operating system can (at least theoretically) send it to people using Ariel's cards. Making matters worse, investors may not have been quite clear on which company they were buying. A Web site, TheTruthseeker.com, released a report early Monday saying that investors mistakenly thought they were investing in "the true wireless company": Aerial Communications (AERL), a Chicago provider of personal communication services. Ariel, a former Nasdaq SmallCap stock that vaulted into the national market last year, reported annual sales of $13 million, a little less than a millionth of Cisco's 1998 take. The investors flying into this issue the day after Thanksgiving didn't seem to care. In part, they could be rewarding Ariel's focus on low-cost cards, which may find an eager audience among the dozens of ISPs cropping up in urban, rural and ethnic markets. Odds are those investors mostly consist of the seat-warming, mouse-clutching, day-trading kind: Of the 11 institutions that held Ariel as of June 30, only one owned more than a million dollars' worth. On Wednesday, some market watchers said Ariel's stock soared because of the competitive pricing of its newly certified product, the RS4200 remote access card set. But Elgindy, as well as Millbrook Partners portfolio manager Mark Mathes, who is short on Ariel, are skeptical about the market for the RS4200. They say the 56-kbps dial-up connection it provides is outdated. Carmen Grasso, chief executive officer of Computer Integrated Technologies, a privately held Internet service provider in New Jersey, says the RS4200 provides unreliable service because it must be routed through personal computers that are subject to mechanical failure. "The cards do no routing. They do nothing but answer the phones," he says. "This is technology that has been around for years."