To: DepyDog who wrote (8599 ) 10/19/2000 4:23:01 PM From: CAtechTrader Read Replies (1) | Respond to DepyDog, re:TERN...I think the margin selling is done now. I did not expect TERN to rally much today until that selling was complete. Now we'll see how it plays. The more I look into TERN's quarterly report, the more I like what I see. I am more convinced than ever that what happened here was a CEO... who does not speak great english to start with.. tried to use the same guidance technique that MSFT, INTC, DELL and CSCO have pioneered, that of downplaying the next quarter after a blow-out quarter. Unfortunately, the words Rakib used did not translate well into his objective (it is definitely an art) and the market took it as uncertainty at best and a warning at worst...when all he really wanted to say was that it won't be as fast at growing sales from $125mil to $1.25bil as it was growing sales $from $10mil to $125mil. This is a mathematical given, no one expects differently, yet spoken on an afternoon when panic reigned in the DSL market (CMTN and COVD) the words were pure poison. TERN was lumped in with these other "last mile" losers, when in fact TERN had executed well and delivered a blow-out quarter. Rakib needed to say nothing, the stock would be at 60 today. Yet his lack of polish and timing led to this fiasco. Rakib is a Technology Guy, not a business guy and that is the risk one takes, put foot in mouth. But ignoring all that, the market has penalized TERN well more than justified. TERN is taking biz away from BRCM yet note the vast gulf of difference in valuations. TERN is now one of those rare stocks selling below its PEG ratio. $10 in cash and the fact the company is executing makes for a rare opportunity. We are rapidly making TERN our largest position. Just FYI DepyDog.
