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To: David Einstein who wrote (810)	12/28/1999 12:07:00 PM
From: Rob Preuss	Respond to of 1762

[Off Topic: PCMS ramblings...] David, I too own DMIC, and I continue to watch PCMS. I can tell you what I think about PCMS, but frankly what I think isn't very important and it may not be very good advice. A year ago PCMS was only a few bucks/share and everyone on the PCMS thread was saying what a good bargain it was... except a few folks (like me) who were worried about some of the financial deals they were doing... then in January, the price of PCMS shot up for a quick triple, the boosters sold their shares for a handsome profit, and they were never heard from again. I sat on the sidelines and continued to watch... I ventured nothing and so I gained nothing. Not long ago I picked up some 5000 shares at 6+3/4 and then sold them a couple months later at 7+7/8... only to watch the price rise even further. I got a small profit and I'm happy with that. The story for PCMS is simple: + Early/popular P-MP product. PCMS was among the first to market with a working P-MP product and have won some orders from Winstar as a result... Winstar doesn't like to have one vendor carrying all their eggs so they've placed orders with others (like Hugh's) as well. Netro is a startup and a wallstreet darling with a good P-MP product as well. + Other products are so-so. + Lousy balance sheet... worries over financing as they continue to dig their way out. + New management team since last Spring. The new management hasn't proven themselves yet, but its a plus to have them since they can't be worse than the old management team. The P-MP product is their only hope... was it too early to market or will they be able to use that lead to garner a big chunk of market-share? Will the newer P-MP products of their competitors steal all the sales as the market for these products develops? The financing issues will continue to be a drag... they'll eventually work them out, but your ownership could get diluted along the way. In short, I consider PCMS kinda speculative. It would be nice to own some shares just in case the price jumps up into the low teens, but I could just as easily see the price dropping to the $3-5/share range again. I think they'll need to have a lot more than their one P-MP product to be worth more than the low teens. I might buy some again if it drops to the $6 range as it would then seem to have more upside than downside. But at the moment I don't see PCMS dropping this low (mostly because its had some good press recently) and I won't pay the current price for it... it could shoot up in January or it could languish as impatient investors sell and try to buy "the next great thing." I'm always surprised by the way that PCMS gets good press and analyst coverage... its probably in this one "promotional" aspect that they manage to beat DMIC. It was their flurry of press releases last December/January that caused the price to shoot up in January... oddly, these press releases contained little substance... but I guess any news will get investors excited... as long as its not bad news. What does all this rambling mean? I don't know... but I hope I've answered your question and I wish you luck. Rob

To: David Einstein who wrote (810)	12/29/1999 10:25:00 AM
From: Rob Preuss	Read Replies (1) \| Respond to of 1762

DMIC added to "SmartList"... pfstockwatch.com "PFStockwatch.com is a market research firm targeting the internet, telecom and high tech sectors. We look for growth companies that we believe are positioned to be among the future leaders in this market. [snip] Our firm looks for those companies that can provide a realistic rate of growth within a 6 to 9 month time period. The "Smart List" is currently up 48.96% since our August 24th start date."

To: David Einstein who wrote (810)	1/3/2000 10:31:00 PM
From: Rob Preuss	Read Replies (1) \| Respond to of 1762

Huge after-hours trade! 334,800 shares bought for 25+13/16 at 16:40:28 on 1/3/00. Source: host.cnbc.com 2nd Source: nasdaq.com

To: David Einstein who wrote (810)	1/12/2000 3:02:00 PM
From: Rob Preuss	Respond to of 1762

[Nextlink continues to evaluate equipment from wireless vendors as it installs substantial equipment this year.] Message 12549877 I believe that DMIC (and Ensemble) will benefit significantly from Nextlink's deployment of broadband wireless access equipment this year.

To: David Einstein who wrote (810)	1/24/2000 4:12:00 PM
From: Rob Preuss	Read Replies (1) \| Respond to of 1762

I just received several research reports (in PDF format) from Ferris Baker Watts on the Telecommunications Equipment providers they follow... including one on DMIC which is dated 1/14/00 (when the share price was $27+1/2). This report states: Our 12-month target price is $34.50, which is today?s multiple of 2Q00 annualized revenue applied to the $86.2 million we forecast for 2Q01. Should the company accelerate momentum with wireless broadband CLECs, we would expect multiple expansion as well as incremental earnings growth. If DMIC?s Altium business were valued at revenue multiples comparable to the CLEC-oriented businesses of high-multiple peers, a sum-of-the-parts valuation would imply a fairly valued price in excess of $83. A 50% haircut to these multiples applied to Altium would imply a share price of $51.22. It also gives this market share information: The market size for the microwave radio market is estimated to be $1.8B ? $2.0B. Ericsson 30% Digital Microwave 15% P-Com 9% Others (Alcatel, Harris, Nokia, Siemens) 46% But its interesting to note that others estimate the market to grow to about $15B annually by 2003... that represents a market growth of about 65% annually for the next 4 years! From the above table, it seems that DMIC and P-Com are the only "pure plays" with significant market share... and (relative to DMIC) P-Com is financially quite weak. Thus it would seem that DMIC is positioned to grow its market share while it grows its top-line revenues and its Gross Margins (from around 32% to around 39%) over the next year... and that will be coupled with new product introductions over the next 9-24 months (for higher capacity and to offer P-MP products) which will keep the market share, revenue and gross-margin expansion going for several more years. To me, that powerful combination could well spell a much higher forward PE of around 75 (or more) and that could easily place us in the $75/sh neighborhood within 12 months. In Summary: + High growth in this market: 65% over next 4 years. + DMIC is a leader (and a pure play) in this market. + DMIC is poised to take market share from others. + DMIC will continue to grow its GM incrementally. + This top-line and margin growth will translate into a high EPS growth rate over the next year. Moreover, because of planned new product introductions, DMIC should be able to sustain this high growth rate for the next 3-5 years. The 16 page Ferris-Baker-Watts report on DMIC is chock full of interesting information both about the wireless telecommunications equipment market in general and about DMIC's position in the market in particular. Note however that this report is dated 1/14/00... they said (on Page 13) that they would have an update after the Q3 conference call on 1/19/00 but we're still waiting on that. In the meantime, you might want to go to their website <http://www.fbw.com/> and ask them for your very own copy of this report. Here's another quote from their report: "Significant headway with Altium could justify a higher multiple in closer correlation with NTRO and the market recognition of ADAP?s AB Access business. If Altium revenue were given the revenue multiple of these two businesses (108x), DMIC's stock would have an implicit value of $84, or if Altium were given half this multiple, then the implied value for DMIC would be $51." "Ferris, Baker Watts, Inc. makes a market in the shares of Digital Microwave Corporation."