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Technology Stocks : COM21 (CMTO) -- Ignore unavailable to you. Want to Upgrade?

To: Howard S. who wrote (2051)	4/12/2000 5:51:00 PM
From: lml	Read Replies (1) \| Respond to of 2347

I continue to believe that bad news for TERN will weigh heavily on CMTO and anything short of terrific earnings may not stop the slide. How so, Howard? If you don't mind me asking, I'd like to gain better insight to your thinking. How do you conclude that "bad news for TERN will weigh heavily on CMTO"? I am aware that the two cable equipment manufacturers have had a correlation of trading patterns in their past, but the hypothesis set forth is that the particular problems TERN is experiencing relating to DOCSIS will have a unique impact on their stock not shared by other cable modem manufacturers going forward. I agree with Pat. Eventually, the truth will emerge, and TERN's stock will suffer relative to either the appreciation or depreciation of the market cap for cable equipment manufacturers. But I am at a loss why you think the bad news particular to TERN is going to have similar impact upon CMTO. I think a distinction needs to be made in your conclusions with respect to systematic vs. non-systematic risk inherent in all stocks. You seem to confuse the two, as the bad news for TERN is non-systematic, and the tendency of TERN & CMTO to trade similarly is systematic. Maybe you can explain.