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To: Tech Master who wrote (4245)2/1/1998 10:11:00 PM
From: tech  Read Replies (2) | Respond to of 10786
 
I have not predicted any doom or gloom. I have tried to post very accurately what the Q4 and FYE 1997 numbers would be based on the $11 million figure mentioned in the business journal. I also included a note at the end of the analysis that stated these numbers were for discussion purposes only and they could vary depending on ALYD's burn rate in Q4 and the accuracy of the $11 million figure.

Furthermore, when I was asked directly how these numbers may effect the price of the stock, I made it clear that there is no way to tell because the general notion is that ALYD will also release some more news with the numbers.

I feel that if these numbers are thrown out there by themselves, then the price may go down, but if some significant news is released there is no way to predict how the market will react to it.

I still own the options I bought and don't plan to sell them unless the stock heads back under $17 1/4

Analysts predict many things, but I don't buy stocks based on predictions alone. Anyone who has followed the market long enough would know that these estimates and predictions are not as accurate as you think them to be. Fundamentals do matter and I think I have followed ALYD and Bob Gruder long enough to realize not believe everything I hear.

Upgrades and downgrades work the same way.

Upgrade - a firm start to accumulate stock in their accounts and once they have reached their limit, they issue an upgrade on the stock. As new buyers come in based on the upgrade, they then sell the stock they have been accumulating and lock in their profits.

Downgrade - a firm issues a downgrade on a stock and as the price falls and investors sell their shares, the firm is accumulating. Once they "shaken out" the shares, they then issue an upgrade.

It would be curious to see how much stock in ALYD this analyst's firm controls and what price they bought it at.