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

To: RobertSheldon who wrote (2361)	6/15/2000 1:10:00 AM
From: akmike	Read Replies (2) \| Respond to of 2702

I've been away for one month and delighted to see the present buying opportunity for VARL. It appears after a quick review that we've experienced a modest restatement of 1997 earnings in a negative manner and a modest restatement of March 00 quarter in a positive manner, along with the resignation of a comptroller and the retirement (after a year's delay) of our CFO. With the backdrop of a small-cap entity in a nervous market, perhaps it is no surprise that so much air has been let out of the balloon, but , unless I am missing something, the fundamentals are intact and the acceleration of earnings and revenues should be expected to continue. By my count six law firms have currently filed actions to line their pockets with our travails and perhaps most of them will be successful in obtaining a "lead plaintiff" and attempting to prosecute a case. It doesn't seem that there is much chance that they will prevail and one good lawyer on our side will have the opportunity to be efficient by drafting motions and filing them in multiple cases causing many plaintiff lawyers to draft responses. Fraud is not easy to prove even when it really happens and very difficult to prosecute when it hasn't happened. More important to the long-term success of this enterprise from the shareholder perspective is whether or not management's focus is diverted by this litigation. The company is in a rapid growth phase and management's attention needs to be on the exciting opportunities ahead of us rather than on justification of the disposal of shares over the past 30 months. I haven't had time to do the calculation, but the decline in price will put several options out of the money and thus, improve earnings per share for the current quarter. With the industry strength, VARL should be in line for a truly blowout quarter. There is nothing on the horizon to slow the acceleration of revenues. It will be interesting to see how much impact the accounting problems will have on VARL's credibility with institutions. I feel that it will cause some to wait and see, but the earnings surge could negate most if not all of that. Can anyone tell me why the accounting firm hasn't been sacked over this?