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Technology Stocks : Teltrend TLTN -- Ignore unavailable to you. Want to Upgrade?

To: Peter Bernhardt who wrote (196)	1/16/1998 10:32:00 AM
From: Peter Bernhardt	Read Replies (2) \| Respond to of 215

Below is a copy of a letter I have just sent to Teltrend's CFO, Doug Hoffmeyer: Mr. Hoffmeyer, You may recall we spoke about a year ago following Teltrend's precipitous drop in value following a series of negative events which had the disturbing characteristic of being reported closely on the heels of a sudden and steep drop in price. In every instance, it seemed, someone somehow had advance knowledge of this news and was able to trade accordingly. Yesterday, I understand that the stock price dropped because SoundView issued a warning that business at the RBOCs had dried up. And now today, lo and behold, your company issues a release stating that you will not meet expectations and for the very reasons mentioned by SoundView. At the time we spoke last year, Mr. Hoffmeyer, I suggested to you that your habit of providing guidance to institutional analysts ahead of individual investors was wrong and that it would only alienate your company among the growing number of individual investors. Apparently my advice fell on deaf ears. After having the good sense to avoid Teltrend as an investment since we spoke, I made the absolutely terrible mistake of reevaluating my assessment of Teltrend and, earlier this week, purchased some shares. My luck and my timing are only a little worse than my terrible misjudgement that anything had really changed at Teltrend. The unfortunate fact that Teltrend will not make its numbers this quarter is a risk of investing and I accept that risk whenever I make an investment decision. What is not unfortunate, but rather is quite despicable, however, is the fact that you chose once again to publicly inform your individual investors of your problems only after the clients of SoundView and, presumably, other institutional investors, had an opportunity to sell their shares. Today I will sell the shares I bought earlier this week in the misguided hope that Teltrend had changed its ways. I will never again be so foolish as to purchase another share of your company's stock. However, I will seek every opportunity to warn other investors of your deplorable record of putting your institutional sponsors ahead of individual investors. - Peter Bernhardt