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Technology Stocks : Applied Magnetics Corp -- Ignore unavailable to you. Want to Upgrade?

To: JDN who wrote (10630)	12/5/1997 4:43:00 PM
From: Rational	Respond to of 12298

JDN: Thanks for bringing to fore what Crisman said. The WS analysts are basically ignorant of technology and production planning and so they try to follow the herd that moves with inertia. The WS inertia is that the CEOs must guide about earnings, but the APM's CEO does not do so. So the WS analysts ponder why hold/recommend his stock? A few days back there was an article in WSJ about a small-cap company begging the fund managers to not sell his stock. The funds threatened to sell if the CEO did not do this or that. If I am a confident CEO, I would aspire to show earnings consistently, instead of appeasing a bunch of analysts who in my opinion are crooks because they take the information ahead of time (in the name of making a buy recommendation) to help their clients/bosses trade before the ordinary traders like us get trapped. I do not know Crisman personally or otherwise and so I cannot defend him. However, his actions seem to me as perfectly consistent with optimal business strategies and with the letter and spirit of the SEC rules to not pass information ahead of time to a bunch of crooks; these rules are generally not followed by most companies that keep trying to please analysts. Sankar