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Technology Stocks : Fastcomm FSCX (6 1/8), base now complete. Big Upside. -- Ignore unavailable to you. Want to Upgrade?

To: Craig Kaltner who wrote (434)	12/16/1997 10:30:00 AM
From: Rick Smith	Read Replies (1) \| Respond to of 802

Good Morning Craig: I already asked those questions. The lawsuits were brought by a former employee. They won't comment about it, but I think that the guy on the Motley Fool FSCX Thread that claims to be a former employee may have the answers. I'm not going back there again (had a trial to AOL that mercifully expired <G>) but maybe someone else could find that guy and ask him. And I still don't know why Madsen has such confidence. I doubt VERY seriously that it was any of the factors you mentioned though. I do still believe, as I've said repeatedly, that he knows about something that is going to be positive that hasn't been released yet. The forward looking statement in the earnings release is a much bigger deal than I think wwe are making of it. If you look back, it's the ONLY FORWARD LOOKING STATEMENT that I can find him ever making. Regarding the cash burn rate. If you look at the release again you'll find that they weren't burning the cash as much as writing off anything they could find. The SEC requirement to write off $330,000 for the discounted notes, $200,000 to pay for lawyers, inventory reserve incease of $175,000, and sales expense which includes the ramp up over the past quarter and costs associated with the new exhibition booth all point to Madsen trying to get the bad numbers behind it, in anticipation of a turn in their buisness. Many of thise items are smoke and mirrors as we can see that are used by accountants. We shall see if I'm right about the current quarter, but at least I have Madsen backing my optimism. Good Luck to all. Rick..