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Strategies & Market Trends : Roger's 1997 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Pancho Villa who wrote (7071)	11/16/1997 10:27:00 AM
From: Roger A. Babb	Read Replies (2) \| Respond to of 9285

Pancho, I agree that ALYD is a good short, but ddim and zitl may be better.

To: Pancho Villa who wrote (7071)	11/16/1997 10:31:00 AM
From: Dale Baker	Read Replies (1) \| Respond to of 9285

ALYD - Look at their 10-Q's and the latest earnings (i.e. loss) announcement. In June the CEO said they expected to cover costs but the customers just couldn't deliver code fast enough. The delivery rate was 1/4 what they expected. They put in a penalty clause for customers who didn't meet 80% of their expected rate. This is a service industry? For the latest quarter, CEO says code wasn't delivered fast enough but they expect to make a profit next quarter. Hope they can meet that $3 million payroll when revenue equaled the increase in accounts receivable for the second quarter. Maybe their 220+ employees will accept receivables in lieu of cash. And let's not forget the Reg S deal which diluted the shares by another 1.7 million. The Reg S holders dumped their shares ASAP. I wonder what he will say after this quarter? Thanks for the tip, Pancho.