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To: P2V who wrote (1005)	8/7/2000 1:41:37 PM
From: Rob Preuss	Respond to of 1762

There was some speculation on the Yahoo! thread that Kevin Landis' FirstHand Funds are among those who are selling at these low prices. Frankly, I very much doubt that is true... If you look at my recent post Message 14150111 you will see that Landis' average share price is between $21.531 and $34.016. [The only way it could be outside this range is if he does a bunch of trading during the month with the trading gains/losses being counted toward reducing/increasing the average share price.] If Landis were selling now, he'd be doing so for, at best, a tiny gain and, more likely, at a loss. Landis' interviews show that he is a big believer in DMIC. I find it more likely that he is a buyer at these low prices... Rob

To: P2V who wrote (1005)	8/8/2000 1:42:07 PM
From: Rob Preuss	Read Replies (1) \| Respond to of 1762

The following information was found on the Yahoo! message board for DMIC. I believe it to be reliable and accurate. It would explain why we've been seeing such strong institutional selling these past few days. In my opinion, DMIC is looking like a screaming buy at current price levels... I expect the $60-$75 price targets to be met by the end of Q1CY01 if not by the end of Q4CY00. Rob ===== LOS ANGELES(DOW JONES)-Shares of DMIC fell 8% Monday following a report by an independent research firm that warned of potential balance sheet deterioration for the wireless systems concern. The Center for Financial Research & Analysis Inc. in Rockville, MD issued a report that pointed out supply and inventory problems at the firm and other issues that it labeled as a prescription for further losses. Shares of San Jose based Internet firm recently traded at 21 15/16,down 1 7/8,or 7.9% on composite volume of 2.45 million, compared with a daily average volume of 1 million. The CFRA report wasn't a total surprise to the SAN JOSE company, which disclosed several problems in mid-July when it announced its fiscal 1st quarter results, said CARL THOMSEN, senior V.P. and C.F.O. for the company. It said then that quarterly revenues results missed consensus views by nearly 8%. DMC attributed the shortfall to difficulty obtaining parts from suppliers,a problem that surfaced unexpectedly at the end of the quarter. The wireless systems maker recently added several new suppliers of transceivers and radio frequency filters.It continues to target year-end revenue of $400 million,said Carl Thomsen. "Our supply chain is tight",he said. "I'm familiar with their organization. They strictly look for balance sheet things that may point to a deterioration of a company. When you have DSO's and Inventory rise,you pop up on their radar screen", Thomsen noted. Some view DSO'S as a yardstick of the company's health. The more days it takes to get customers to pay their bills could be interpreted as a desperation gambit to retain customers who might be thinking of jumping ship-so you give them more time to pay their bills. Still, Kopp Investment Advisors,Inc., the biggest holder of stock in Digital Microwave, with about a seventh of total shares outstanding in its' portfolio, is bullish on the company. Several other Wall Street analysts also remain bullish on the stock. Dale Pfau, analyst of CIBC World Markets,still holds a strong buy rating on the company with a 52 week price target of $75 a share."The fundamentals of the company are sound,"Pfau said. James P. McIlree,analyst with Tucker Anthony Cleary Gill in New York City,also has a strong buy on the company with a price target of $60 a share."I don't think the increase in DSO'S is an indication of desperation for this company. I like this company," McIlree said. ===== Remark: DSO = "DAYS SALES OUTSTANDING" is a measure of how much unsold inventory they have on hand... lower is better. DMIC has gone from 92 to 100 to 101 and now to 123 for the most recent quarter. This is the primary reason the CFRA concern. ===== Sally Anderson, senior portfolio manager with Kopp, believes some information from the above release is accurate. "Competitive noise " is being made in Digital Microwave's high-speed wireless niche with Giganet(GGNT) of Israel and Triton Network Systems Inc.(TNSI). Both came public in the past 2 months and garnered Wall Street attention in their roadshows. "This partially explains the sloppy trading of late of DMIC," Anderson observed. =====