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Technology Stocks : Vari-L (VARL) -- Ignore unavailable to you. Want to Upgrade?

To: JBruin who wrote (2065)	4/7/2000 2:25:00 PM
From: RobertSheldon	Read Replies (2) \| Respond to of 2702

Yep . . . remember this is the year of broadband wireless rollout . . . we should see a number of announcements from VARL relating to follow on orders and the like in new orders. Some of you have noticed that a couple analysts reduced their earnings models . . . note that in the fourth quarter of 1999 the holders of warrants exercised them. This huge increase in shares outstanding says nothing of the performance of VARL this year. I remain convinced that they will grow top line revenue in excess of 40%. EPS HAD to be reduced due to the exercise that amounted to an additional 250,000 shares that NO ONE expected. If I believed in conspiracies I might think that the warrant holders were attempting to drive the stock down due to a "apparent" EPS shortfall. Rarely would a person/group exercise so close to the end of the year, especially in this market with the implied capital gains. I have long believed that when VARL did the original financing (yes, I was in the stock way back then) deal that it was under a bit of distress. The structure looked a whole lot like a potentially toxic financing deal, where the capital providers could essentially profit if the company's stock price took a big dive. It is my belief that perhaps at some point in the past year, VARL rebutted the "financiers" in some way and this was the financiers effort to "penalize" management. While the financiers no longer have a financial interest, the effect has been to take the street value of the company from $39 down to the levels we are at now. A lot goes on in the background that most investors are not aware of . . . perhaps the aforementioned occurred, perhaps it did not. In any case, rest assured that VARL is raking in the revenues, and that it is only a matter of time before these exogenous forces are muted. Hang in there for one more year of dilution and we all will be vastly rewarded. Perhaps the street will see this and anticipate it too - in other words, DO NOT TRY TO TRADE THIS STOCK.