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Technology Stocks : Computer Network Technology (CMNT) -- Ignore unavailable to you. Want to Upgrade?

To: ExtraBases who wrote (309)	2/8/1998 1:56:00 AM
From: Rainforest	Read Replies (1) \| Respond to of 750

Excerpts from a Feb 6 update on CMNT by Insider Trader: "On the OEM front, we are quite pleased with CMNT's progress. Bay Networks, Exabyte, and IBM have all signed on as licensees in the last few months, and we expect a few more announcements on this front in the first half of 1998. .... For the current quarter, only Exabyte is expected to provide any revenues. Bay Networks will roll out its marketing effort late in the quarter, resulting in real sales in the second quarter. The IBM deal is not expected to kick in until the second half of the year. Add it up, though, and you have the makings of a nice steady sales ramp over the next few quarters.... In addition to an expected sales ramp thanks to new products and new partners, we also are looking for a brightening outlook in the company's financials. After buying back 250,000 shares in the fourth quarter, the company is now three-fourths towards its goal of a 2 million share buy back. Though the additional 500,000 shares should drain an additional $2 million from the till, the company should boost its $10.7 million cash stash as the company winnows its staggering $32 million worth of Accounts Receivables. Indeed many customers ponied up in January, and the 96 days sales outstanding figure should drop to a still high, but more respectable 75-80 days. Part of the accounts receivable bulge comes from the Apertus deal, but Barnum notes that anything carried on the books is still deemed collectible. Any doubtful accounts were thrown with the Apertus-related charges taken in the fourth quarter. A solid company with steady growth prospects, CMNT remains a buy." Insider activity shows more buying than selling in the last few month. I'm holding on to my shares. I think the price of the shares will be moving up to 6 fairly quickly or the company will be bought out at close to that price. There are many companes that would want to offer CNT's connectivity products as part of their own service, IMO.