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To: XBrit who wrote (25147)	10/6/2000 6:35:59 AM
From: Earlie	Read Replies (1) \| Respond to of 436258

Julius: The two reasons for "warnings that I am aware of are: - as you surmised, to endeavour to keep the class action lawyers at bay and - to lend a hand to their favourite analysts in shifting expectations to a lower level. Usually, the analysts are warned through "midnight phone calls" a few days before the "warning" is issued. This provided the required time for the favoured analysts to pull down their estimates and reduce their recommendations from "strong buy" to "market perform". (g) The SEC has publicly leaned on companies to cease providing analysts with info before the public gets it. As I noted back in August, I thought this might ensure that this quarter's "pre-announcement" period might have a good deal more impact than in the past. It has. I suspect that the insiders in certain companies have made a conscious decision to forego a "warning" this quarter in the interest of extending the period during which insiders can "off" a bit more stock. Note the torrent of insider sales at some (most?) tech companies of late. The river of insider selling over the last two years has become a virtual tidal wave. Best, Earlie