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

To: Brian who wrote (11129)	12/24/1997 2:59:00 PM
From: appro	Read Replies (2) \| Respond to of 12298

A chilling Christmas Story: Many Christmases past I was >>watching a train wreck in slow motion<< as a passenger. I for one know how volatile these stocks can be. Every month, my brokerage statement shows a line for my shares of a company which went banckrupt years ago. I had to give special instructions to transfer these 'worthless' shares to my new broker two years ago for safe keeping. Why? For the lesson I learned the hard way. It was and is a fine manufacturer of computers known as Everex, symbol EVRX. The short story is that Everex went through some difficult times which strained their finances. A friend down the street often lunched with one of their employees, so I felt I had inside knowledge that they were optimistic about acceptance of the new product line and new production was starting on a new life-saving government contract for servers. By then the share price had fallen to an unbelievably cheap $1.25, well below book value. Surprize! My understanding is the company received the cash infusions they needed in reorganization from the debt holders, some of whom had founded the company and sold the common stock. Their was no further communication with 'shareholders'. We were fleeced. It was perfectly legal. All I am saying to the longs on this thread is don't bet the farm on platitudes like "Buy when no one else wants it". Sometimes, the market knows. P.S. I believe some of these same debt holders who took ownership of the company own plants in the far east (China I think) to which Everex supposedly outsourced some manufacturing. After the fact I realized it was all too complicated for me to understand, but I think that is the point.