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To: DD™ who wrote (285)	10/30/1997 12:03:00 PM
From: jeffbas	Read Replies (6) \| Respond to of 1250

On the conference call I believe mgmt projected a sales level for 1998 consistent with an average $80 million per quarter. They also projected a return in 1998 "to historical levels of profitability". If so, they should make over $.40 in some 1998 quarter and the stock would be $25-30. The question is are they believable. The CFO told me on the last day of September that everything was fine for the quarter just ending. It was not. A mgmt that on the last day of the quarter neither knows that it has a sales or a margin problem is a mgmt that at best is spread too thin. I am not giving them the benefit of the doubt and see no reason why tax loss selling will not drive this down to about $10. However, since I regard mgmt as the single most important criteria in a stock investment, I would rate this "avoid" at any price. (If they do not know what is going on about a just ended quarter, why should we assume a projection about the future is any better?) Any other opinions? Paul?

To: DD™ who wrote (285)	10/30/1997 12:28:00 PM
From: Gordon Quickstad	Read Replies (1) \| Respond to of 1250

It must be about as low as it will go. I will stick my neck out, though, and predict it won't go below zero. You want problems with management, just look at Oxford Health Systems. They told one of the major analysts two weeks before last Monday that the company was on track for the street estimates and then they come in with a big loss on grey Monday. Management sold large quantities of stock before the news hit the press. Stock dove over 65% and now it probably won't be coming back for quite because of the mistrust.