Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Copytele - Another XEROX in future -- Ignore unavailable to you. Want to Upgrade?

To: Ken G who wrote (1074)	11/7/1997 12:36:00 PM
From: Brad Zelnick	Read Replies (1) \| Respond to of 1320

That market prat-fall yesterday was fortuitous for me. I was able to cover my short position in the 3's and establish an average long position under $4/share. I've been doing some heavy calculations on the upshot of the Hang Seng problems. Its just the tip of an iceberg. Have you seen George Soros's recent moves? Buffett buying bonds! The opportunity is this: we're seeing major nation-deflation. It's the whole sector, the whole region: an Asian nation-deflation. Copytele by dumb luck is right there with ramp up of a new product with large distribution contracts in place. They don't have to move a muscle. Just ride the wave. Suddenly their product becomes very cheap. The third world strategy for the near-term will sell at a fourth world price. While they begin the rollout of their multi-function telephony device, they will have bought another two years of flat panel development time. Since they are an American company, import quotas won't apply. Copytele starts being a very attractive speculation in the Flat Panel Display sector. Downside risk disappears at this price because with their Shanghai base of operation, should the panel take longer - their infrastructure is valuable to American companies wanting to manufacture cheaply and import without duty. In other words their set-up has franchise value in and of itself. (Remember as Graham-Dodd and value investors like Klarman teach everything has some value, the issue is price.) Copytele at this time, in this environment, at this price has potential value with minimal downside risk. Take care, Brad

To: Ken G who wrote (1074)	11/7/1997 1:22:00 PM
From: Rich Goldsmith	Read Replies (1) \| Respond to of 1320

By George, I think you've almost got it! Let's see, using a PE of 10 I get about $30 a share, so we're close here. However, MSFT at 30 would have a growth of 300% (they actually have products that people pay money for) so suddenly I'm willing to pay at least $90. I'll see Windows98 and that 'fabled new internet search engine' way before COPY ever sells a thing. If COPY ever does sell anything to more than 10 people outside of the company, I'll buy back in, but not until then. Bye the bye, I have, nor have I ever had, a short (or a margin)position in anything. Regards, Rich