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Technology Stocks : Terayon - S CDMA player (TERN) -- Ignore unavailable to you. Want to Upgrade?

To: Winston Lee who wrote (372)	3/20/2000 11:53:00 AM
From: Robert G. Harrell	Read Replies (1) \| Respond to of 1658

Winston, I haven't been reading this thread because TERN wasn't that big a portion of my portfolio. Yesterday a friend of mine told me he got a very negative report on TERN from Morgan Stanley Dean Witter. He made it sound like it was broker research that was saying the founders of the company had bailed out and that CDMA wasn't going to be adopted, blah, blah, blah. I asked him to bring me a copy of the report at church last night. Meanwhile I started searching for news, 144's, etc. during breaks in the basketball games yesterday. That's when I found this thread and skimmed the recent posts for anything which substantiated what he said. It sounds like the Forbes article you guys were discussing was saying similar things. I couldn't find a real article in my latest Forbes but did find a small paragraph on page 30 which concluded with "short sellers are drooling." My friend brought me the "report" which turned out to be a reprint of the following Fortune Investor article. fortune.com This article has the smell and feel of part of a classic short campaign against a stock. Especially in view of the Forbes blurb. The article ended with the following slanted, negative, classic misuse of insider trading news: So if the company doesn't live up to its broadband hype, who stands to lose? Well, since spring 1999, Terayon's venture capital backers, Sequoia Capital and Weiss Peck & Greer, have disposed of or distributed almost all their shares, and the Rakib brothers have either sold or filed to sell over $25 million worth of stock. Hmm. Guess which investors may be left holding the bag. I wouldn't be surprised to see a negative write up in TheStreet. com by Herb Greenberg soon. I don't think you guys have discussed this article yet. I would be interested in your take on the technology issue. In the meantime, you might want to consider bailing out until the shorts are finished pummeling the stock. My brother and I sold at the open. My experience is that even if they are dead wrong on the facts, big short sellers can create so much FUD that they can create panic selling in a stock with a few well timed sales to kill a stock. My most recent experience is with THQI which is my largest, in shares, holding. It was my largest holding in value but the shorts took care of that. I would strongly suggest that anyone who is on margin at least put a stop under their shares. It was dropping so fast this morning that I couldn't get far enough below the price to get a stop order accepted so I just sold at the market which I hate doing. Got out at 176 5/16 which bagged a good profit since I got in the first time Gilder mentioned TERN. Best regards, Bob