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Technology Stocks : Glenayre Technologies(GEMS)- a pure cellular PCS play? -- Ignore unavailable to you. Want to Upgrade?

To: Gary Ku who wrote (2395)	12/21/1997 10:48:00 AM
From: Jeffrey L. Henken	Read Replies (1) \| Respond to of 3431

Stocks don't tumble on expected charges. If GEMS fails to meet earnings expectations before charges, then it will tumble. If earnings are exceeded then the stock will rise. If they meet them then the stock is at the mercy of the market. This is currently a bad market. Southeast Asia is a large percentage of GEMS business. I think a greater loss than is expected is not at all unlikely. But to say any subsequent further loss in share price would be due to the charge is idiotic. Remember that three separate insiders have bought shares in GEMS recently. I challenge you to name two other technology stocks with a PE of 10 that have had three separate insiders buying recently? I am not saying that the stock could not go lower. But I think your reasoning is not in tune to what I see in normal market reaction to expected write offs. In fact if I used that reasoning I could say the stock will rise when the old Western Multiplexer is sold. Even if it brings in $120 million that won't happen. Why? Once again it is expected. But by June I expect GEMS to be much higher. Regards, Jeff

To: Gary Ku who wrote (2395)	12/21/1997 12:10:00 PM
From: Sunny Jim	Respond to of 3431

Don't they also have the sale of the microwave division that will help offset this charge? It is in the negotiation process, and I thought I saw where they had 2 ro 3 bids that they were evaluating. If the deal comes together and it is any good, there should be a pop in the stock.