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

To: okey who wrote (725)	4/17/2000 12:41:00 PM
From: Becky B	Read Replies (1) \| Respond to of 1658

Cross-post from RB: By: moravek1 Reply To: 1997 by jeffgordon Saturday, 15 Apr 2000 at 11:12 PM EDT Post # of 2086 If the cease and desist letter was authentic then it was confidential. The letter asked Terayon to stop making statements concerning the certain acceptance of S-CDMA into the DOCSIS standard even though the current policy of CableLabs is the very likely acceptance of S-CDMA. The same letter acknowledges the contribution of Terayon to DOCSIS. Keep in mind that DOCSIS asked Terayon to draft a proposal for the next standard and decided to take up the matter separately from the implementation of TDMA for the sake of speed of implementation. CableLabs reiterated its interest in receiving a prototype of the S-CDMA technology so it could be evaluated and if it performed as expected it would likely be adopted into an upcoming release of DOCSIS. Terayon insiders own a higher percentage of stock in their company than most tech companies. There has been no massive insider selling. At Terayon's web site, in more than one location, you can read that S-CDMA is likely to be accepted by DOCSIS, not certain. The SEC disclosure you can download from Terayon's web site clearly states that S-CDMA is not a sure thing in DOCSIS. Keep in mind that the 400% sales for Q:1 00 compared to Q1:99 was achieved without CableLabs acceptance of S-CDMA as part of DOCSIS. How is sale of limited number of shares of stock non-disclosure if the sale of shares had to be filed for in advance? The amount of insider selling was not substantial and not out of the ordinary under any standard. How can you accuse a company of non-disclosure concerning the possibility that S-CDMA may not be included in an upcoming release of DOCSIS when the information is and has been posted at multiple locations on Terayon's web site? Shaw and Rogers became "good" customers when they recognized the potential of Terayon's S-CDMA to very substantially reduce the cost of implementing broadband in Canada by using Terayon's superior technology. At that time, Terayon did not have 60M in quarterly sales. As a matter of fact they were nearly broke. When a Shaw and Rogers saved Terayon from ruin, they were given warrants based on the stock price at that time. The stock has appreciated by four times since the shares were issued so it is no wonder that the shares are "cheap" by comparison. The issues Terayon is supposedly evading are: Insider selling of stock where the filing with the SEC is required in advance of the sale and the percentage of insider ownership remains very high by any reasonable standard. There is nothing to evade. Non-disclosure of S-CDMA potentially not being made part of DOCSIS where the facts are clearly and accurately posted on Terayon's web site. There is nothing to evade. Are you aware that just about all cable modems use Broadcom chips? Are you aware that Terayon is one of a very few companies that make their own chips (proprietary S-CDMA chips)? Are you also aware that the outstanding growth of Terayon's sales has been accomplished with 80% of total international sales where S-CDMA is booming? Again $30 per share (660M) is a pretty strange valuation call. Few companies could live up to 1.3 times next year's sales valuation target or 7 times this year's sales valuation. Good night