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Technology Stocks : ACTM $100 Million Cable Modem Contract with MOT -- Ignore unavailable to you. Want to Upgrade?

To: James M. Bash who wrote (527)	2/27/1998 10:35:00 AM
From: jeffbas	Read Replies (2) \| Respond to of 1250

Yes I think it is possible but not likely. They were audited a year ago, so I think a system error would have shown up then or earlier. I am most worried about the various possibilities that inventory costs taken against earnings in determining the cost of goods were too low, meaning what is left in inventory has a higher book value than a physical inventory will support --> earnings restatements. Next, I was told 9/30 by Greenlaw that they "were ahead of plan" --> preannouncement a few days later. Rob was told 1/23 in detail he posted that everything was fine, which it was not. This management are liars or incompetent, and probably both. Management is the most important ingredient in a company. On Paul's list give them a "0"! If anything is shady and BAY decides to take a walk this company is in SERIOUS trouble. Lastly, AG Edwards which was the first to upgrade in December, after the October disaster, downgraded yesterday to hold, a mere 2 points lower than their December price. Why? They did not do it routinely at the opening it seems but near the end of the day. I draw the inference that the analyst called the company and did not like the body language - since they would probably not be specific. I think the stock is fairly valued here on fundamentals, with some unknown and possibly serious risks. I swallowed a very bitter pill and sold yesterday. The subsequent action says I was wrong. Well, I hope for my friends on this thread that I am wrong, but I am now deleting ACTM off my screen. If anyone wants to discuss something I am available on email. Good luck to all. May Sanmina show up tomorrow with a $20 offer.