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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: Cornstock who wrote (7528)	11/12/1997 11:15:00 AM
From: Doug R	Read Replies (1) \| Respond to of 79383

In a market like this, stocks like DIGL are the only way to go: (Please do your own research and don't take this as a recommendation 'cause it ain't) DIGITAL LIGHTWAVE INC. Nasdaq : DIGL Address:.................................................................... ............ÿ601 Cleveland Street, Fifth Floor ............................................................................. .....................Clearwater, FL 34615 Phone: ............................................................................. .......(813) 442-6677 Website: ............................................................................. ... lightwave.com DIGL manufactures advanced computer systems that provide information concerning the performance of lightwave telecommunications networks and transmission equipment. EXECUTIVE SUMMARY: * INSIDE OWNERSHIP About 76% of the shares are held by Bryan J. Zwan, the chairman and CEO. Institutions own 9.1%. * MEDIA ATTENTION Company was featured in The New America section of Individual Investor Daily on Sept. 18, 1997. The story is available on the company website. lightwave.com The Company is a presenter at the CMA Trade Show in New York, Nov. 11 -13th. cma.org DIGL will participate in the PTC trade show in Hawaii and the ComNet trade show in Wash. D.C. in January. BROKERAGE COVERAGE On October 10, 1997 Soundview Financial issued a STRONG BUY RATING on DIGL based "on the positive outlook of the company and the continued demand for fiber-optic transmission systems and the need to monitor them. The company has a premier customer base, new products in the works, and a strong balance sheet." On Sepember 30, 197 CS FIRST BOSTON issued a STRONG BUY RATING on DIGL and set a price target of $28/share. On September 26, 1997 Southeast Research Partners issued a STRONG BUY RATING on DIGL and set a price target of $21 TO $25 per share. Furman Selz analyst Michael Neiberg issued a 14 page Company Report on DIGL. Report highlights: "The company should experience dramatic growth in 1997 fueled by the rapid acceptance and market share gain of its initial product, the ASA 312 Network Information Computer. STRONG EARNINGS/BALANCE SHEET Last quarter's earnings report announced in October beat estimates by over 60%. Profit margins are in the 70% range. . The company will continue to benefit from a loss carry forward for tax purposes. Highlights from the balance sheet include: 1. Cash and equivalents are 44 million. 2. Long term debt is virtually non existant at $95,000. 3. Sales and Marketing expenses decreased 12% from 96 down to 22% of sales 4. G/A expenses decreased from 7/1/96 - 9/30/96 of 21% to 11% for the same period in 1997. G/A expenses also decreased from 15% for the second quarter of 1997 showing management's ability to keep internal costs in line while handling the company's expansion. biz.yahoo.com * NEW MARKETING INITIATIVES The Company has increased its sales and marketing efforts resulting in a larger volume of orders for the second quarter of 1997 than in all of 1996. The company is now expanding its customer support infrastructure and initiating an international sales and marketing group. The "Remote Access Agent" family of products was recently launched * IMPROVED MANUFACTURING/TECHNOLOGICAL CAPABILITIES The company significantly expanded its manufacturing capacity moving the final assembly, test and burn-in operation to a new 13,000 square foot manufacturing facility. Digital Lightwave has established a Center of Excellence in New Jersey, with a core of leading object-oriented network management software designers. * LARGE CUSTOMER BASE Customers include leading telecommunications companies, such as WorldCom, MCI, AT&T, Sprint, Regional Bell Operating Companies, GTE, Time Warner, TCG, and Brooks Fiber Properties, Inc.; and equipment manufacturers such as Tellabs, Nortel, Lucent, Alcatel and NEC. Sales to MCI, Ameritech and Pacific Telesis Group accounted for 25%, 19% and 15% of the 1996 total, respectively. ALL THE REST: * Float is only a tiny fraction of total shares ouststanding. tradepbs.com * Telecomm Equip Industry quote.yahoo.com * Short Interest viwes.com * Vectorbest vectorvest.com * New Management fast.quote.com{{ceekyrceket fast.quote.com{{ceekyrceket fast.quote.com{{ceekyrceket fast.quote.com{{ceekyrceket

To: Cornstock who wrote (7528)	11/12/1997 11:27:00 AM
From: Doug R	Respond to of 79383

DIGITAL LIGHTWAVE INC 601 Cleveland Street, Fifth Floor Clearwater, FL 34615 (813) 442-6677 Employees: 89 Bryan J. Zwan, Chmn./CEO/Pres. Seth P. Joseph, Sr. Exec. VP Steven H. Grant, VP-Fin./CFO Eric A. Mitchell, VP. Industry: Communications Equipment Sector: Technology 207.226.179.205 Business Summary : DIGL develops, manufactures and sells products that provide intelligent termination, integration & switching of lightwave communications, including SONET, ATM and T-Carrier telecommunications networks and transmission equipment. For the 6 months ended 6/97, sales rose from $1.3M to $6.8M. Net income totalled $25K vs. a loss of $1.6M. Revenues reflect inclusion of ASA 312 products sales. Earnings reflect higher gross profits and interest income from the IPO proceeds. ultra.zacks.com Consensus Estimate for Current Fiscal Year ( 12/97 ) $ 0.13 per share Consensus Estimate for Next Fiscal Year ( 12/98 ) $ 0.50 per share Consensus Estimate for Current Quarter ( 12/97 ) $ 0.08 per share Actual Earnings Last Quarter ( 9/97 ) $ 0.08 per share EPS Surprise Last Quarter 60 % quote.yahoo.com Number of brokers recommending as: Strong Buy 3 Moderate Buy 1 Hold 0 Moderate Sell 0 Strong Sell 0 Investers Business Daily Write Up: lightwave.com

To: Cornstock who wrote (7528)	11/12/1997 11:28:00 AM
From: Doug R	Respond to of 79383

DGIL: The Tables!! Digital Lightwave, Inc. Statements of Operations (in thousands, except share and per-share data) (unaudited) Three Months Ended Nine Months Ended 9/30/97 6/30/97 9/30/96 9/30/97 9/30/96 Sales $8,340 $5,310 $1,723 $15,148 $3,037 Cost of goods sold 2,787 1,590 630 4,944 1,152 Gross profit 5,553 3,720 1,093 10,204 1,885 Gross profit percentage 67% 70% 63% 67% 62% Operating expenses: Engineering and development 1,230 948 667 3,056 1,653 Sales and marketing 1,799 1,179 579 3,857 1,048 General and administrative 911 795 354 2,485 897 Total operating expenses 3,940 2,922 1,600 9,398 3,598 Operating income (loss) 1,613 798 (507) 806 (1,713) Other income (expense) 511 539 (215) 1,342 (607) Income (loss) before income tax 2,124 1,337 (722) 2,148 (2,320) Income tax expense -- -- -- -- -- Net income (loss) $2,124 $1,337 ($722) $2,148 ($2,320) Net income (loss) per share $0.08 $0.05 ($0.03) $0.08 ($0.11) Weighted average shares outstanding (A) 27,087,802 26,321,990 22,083,914 26,374,388 21,829,235 (A) Reflects the issuance of 3,658,860 shares of Common Stock in connection with the Company's February 1997 initial public offering and gives effect to outstanding stock options using the treasury stock method.

To: Cornstock who wrote (7528)	11/12/1997 11:30:00 AM
From: Doug R	Respond to of 79383

DGIL: The Rest Of The Tables!! (rather painless this time, huh?) Digital Lightwave, Inc. Balance Sheet (in thousands) (unaudited) September 30, June 30, December 31, 1997 1997 1996 (unaudited) (unaudited) ASSETS Current assets: Cash and cash equivalents $33,480 $36,227 $1,165 Accounts receivable, net 10,798 4,104 2,510 Notes receivable 52 52 44 Inventories 1,299 1,726 850 Prepaid expenses and other current assets 499 172 472 Total current assets 46,128 42,281 5,041 Property and equipment, net 3,824 2,619 1,292 Other assets 130 58 41 Total assets $50,082 $44,958 $6,374 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable & accrued liabilities $3,243 $2,028 $1,942 Current maturities of capital lease obligations 132 -- 750 Total current liabilities 3,375 2,028 2,692 Long-term liabilities 95 142 233 Total liabilities 3,470 2,170 2,925 Stockholders' equity: Preferred stock -- -- -- Common stock 3 3 2 Additional paid-in capital 53,555 53,555 14,242 Accumulated deficit (6,946) (9,070) (9,095) Note receivable from stockholder -- (1,700) (1,700) Total stockholders' equity 46,612 42,788 3,449 Total liabilities and stockholders' equity $50,082 $44,958 $6,374 SOURCE Digital Lightwave, Inc.

To: Cornstock who wrote (7528)	11/12/1997 11:31:00 AM
From: Doug R	Read Replies (3) \| Respond to of 79383

The Chart, DIGL has been moving quickly and steadily. The uptrend is advancing at a rate that identifies it as a strong momentum play. It is currently testing the key psychological 20 dollar milestone area. The momentum strongly suggests that the stock will handle this challenge relatively easily. The stock began it's upward climb with a classic stairstep pattern and has only recently started to break into a more typical pattern of a sawtoothed climb. This transition from stairstep to sawtooth is a bullish signal that is created when the trading volume begins to pick up significantly suggesting that the stock is now receiving alot of positive attention from the investment community. A solid move through 20 would lead the stock to an initial target of 28 to 32. Current trendline support reaches 20 in 2 1/2 weeks while the top of a well defined channel is at 24 in the same time. The channel is rising at a monthly rate of 10 to 12%. A nice symmetrical triangle (or pennant) has formed in the last 3 weeks and is very near the apex. This formation is a good continuation pattern and is bullish for the outlook of the stock. The Technicals The SMI configuration is very strong. A strong uptrend in the short-term is reaching the level that will push the intermediate-term SMI higher. The intermediate SMI is very solidly above the bullish threshold and as it oscillates along is setting up a symmetrical triangle. A breakout to the upside of this triangle is likely within 2 weeks. That event would correspond well with a breakout of the price to beyond 20. In a strongly trending stock the 89 day MA/MLR will of course be positive. In tracking the trend, I use a 13 day MA/MLR to monitor the stock's progress and strength. DIGL's 13 day MA/MLR is at the point of a new crossover which occurs at the start of each leg up. This is a good buy signal to take advantage of the recent pullback in price. The 3 day Bollinger Bands have come together suggesting in imminent move. All periods of Bollinger Bands are positive and show no reason for DIGL to falter. The commodity channel index shows no reason for the price to falter as well. The 13 day CCI is bouncing above the +100 level regularly and is currently trending toward another bounce up. A look at the MA grouping shows bullish configuration with a current compression of the 5 and 8 dMA's. Most of DIGL's moves begin off a compression of the shorter term MA's, only reaching to the 13 dMA at most. MACD is above the bullish threshold, not currently turned up so a compression to the 13 dMA may be expected before the price begins up. Accumulation/Distribution is in all time high territory and trending up strongly. MoneyFlow has come back down from overbought levels and would currently be considered neutral. PVI/NVI are trending more or less together. This usually occurs in stocks that are soundly trending for the long-term but since DGIL doesn't have a long-term history yet, this indicator with this configuration would have to be deemed neutral as well. The 144 day RSI (as little of it available as there is) is trending up above 50. There is a good uptrend in all other periods of the RSI with triangulation occurring that coincides with the same in the SMI. The 3 day RSI has established a hinge that suggests a move up is approaching. At this time DIGL is prepared to continue its currently strong uptrend and attempt to put 20 behind it. The technicals indicate that as it does so, it will become technically stronger and add to its momentum. It seems that DIGL is preparing to make a technical attempt at a very significant move in the short-term that has very favorable intermediate-term implications. Buy any security at your own risk. (That's a disclaimer)