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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Roger A. Babb who wrote (2490)	2/8/1998 2:32:00 PM
From: Rajiv	Read Replies (1) \| Respond to of 18691

Roger and all, Take a look at MMCN. MMCN makes network processors. Cisco is a major customer. Sales to Japanese customers (Hitachi and Mitsui) accounts for 30+% of revenues. MMCN is not a development stage company (at least it does not claim to be one ) - it has been making miniscule profits for quite some time. Last quarter revenues were 7.6 million Net income : $639k ( more than half of which was contributed by interest income from the money invested from the IPO proceeds). eps : $0.02 For the year 1997. eps of $0.04 on revenues of 22 million. The market cap is astronomical compared to its revenues. It has 28+ million shares outstanding (excluding 5+ million exercisable options). At the current price of 19 its p/s ratio is 25+. Even if it manages to grow at a high rate, it is overvalued by several orders of magnitude. 25 million shares are in the lockup period which ends in the last week of April. The current float is 4 million shares. This should create a lot of selling pressure (its daily volume is not very high - around 100k). Disclaimer : I am obviously short MMCN Any comments? Regards Rajiv

To: Roger A. Babb who wrote (2490)	2/8/1998 2:42:00 PM
From: Rajiv	Read Replies (2) \| Respond to of 18691

Also take a look at Altair International - ALTIF No revenues, no earnings, plenty of hype. A small canadian based company with claims of having the technology to make a centrifugal jig (supposedly a wonder). A sample of the jig was delivered to several companies for being tested quite some time back - no news (reminds me of the matridigm product and nevada). Has mining rights on some property in TN (the mining rights were previously held by several companies - each of which found it unprofitable). A floorless convertible offering was made in Dec. Note the insider sales during that period and the rise in the short interest. This company is also listed in the Alberta stock exchange. Recently moved to the Nasdaq national market from the nasdaq small-caps. Comments ? Regards Rajiv