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Technology Stocks : DSC Communications -- Ignore unavailable to you. Want to Upgrade?

To: Ron McKinnon who wrote (3770)	3/7/1998 10:33:00 AM
From: Moe Damghani	Respond to of 4429

Maybe some of those big guys like Fidelity who purchased 7.8 millions shares up to 12/31/97 and Alliance Capital Management who purchased 12.7 millions up to 12/31/97 have realized they made a bad decision and now starting to dump. If this is the case then we haven't seen anything yet because this would be the beginning of it. Normally, when these guys start buying or selling the shares, it takes them 1-3 months to do so. Once they start, it may catch the eyes of other big holders and they may follow. I sure hope this is not the case! The following are the top five most respected analysts on Wall Street who follow DSC. These guys are the ones who move the stock and unfortunately 4 of them have a HOLD rating on DSC. I found this out today from the Waterhouse Securities research. Something and I don't know what turned these analysts bearish on DSC all of a sudden. Unless DSC is able to change their views, we'll be in a trading range or head a lot lower. I would not add to my position for any reasons until I see an upgrade from these guys...... FIRM ------DATE LAST UPDATED ------RATING ROBERTSON STEPHENS & CO----02/25/98 ----BUY MONTGOMERY SECURITIES------01/30/98 ----HOLD UBS SECURITIES-------------01/28/98 ----HOLD SOUNDVIEW FINANCIAL GROUP--01/28/98 ----HOLD BROWN BROTHERS HARRIMAN----01/28/98 ----HOLD Robertson Stephens guy, Tim S., had a buy rating on DSC before, he just maintained his rating on 2/25/98. All of the other four analysts had a buy ratings on DSC before they changed their minds and downgraded to hold. GOOD LUCK TO ALL....

To: Ron McKinnon who wrote (3770)	3/7/1998 10:53:00 AM
From: Moe Damghani	Read Replies (3) \| Respond to of 4429

From Yahoo thread.... An associate received the following email update from UBS(?) securities: "Wall Street Tech" is the email newsletter on Telecom Equipment, Data Networking, Telecom Software and Internet Technology by Nikos Theodosopoulos, Scott Heritage, Mike Agarwala and Anton Wahlman at UBS Securities LLC. For comments or to unsubscribe to the list, please send an email to anton.wahlman@ubs.com or call 212-821-3675. An excel model is enclosed. Nikos Theodosopoulos 212-821-6951 nikos.theodosopoulos@ubs.com Scott Heritage 212-821-6828 scott.heritage@ubs.com Mike Agarwala 212-821-3192 michael.agarwala@ubs.com Anton Wahlman 212-821-3675 anton.wahlman@ubs.com ______________________________________________________________________ Our research indicates that the recent SS7 failure was in fact exacerbated by a software glitch in the DSC STP. It appears that the DSC STP basically shut-down due to the generation of higher than normal network management messages within the STP. DSC apparently has identified this software glitch and has developed a software patch to fix the problem. This would be the second software problem that DSC STPs have experienced within this customer's network since October of 1997. The good news for DSC is that it appears they have a software fix. The bad news is that the company is at risk of losing some credibility with their STP software quality control in the industry in the near to intermediate term. We do not know how, if any, this event will impact DSC's STP business in the US given the real time nature of these events. Highlights: As a follow up to yesterday's note, our research has further indicated that a software glitch in the DSC STP exacerbated the length of the SS7 network failure that was originally caused by a transmission error in the network. We believe the DSC STP shut down after generating a higher than normal network management messages in response to the transmission error in the network. While the creation of these messages is normal, the shutdown of the STP is not. We believe DSC has determined a software patch for this fix and will probably discuss this patch with customers in a timely manner. The good news for DSC is that a fix appears to be known. The bad news for DSC, however, is that this would be the second software issue within this customer's SS7 network since October of 1997. This may cause a short to intermediate term credibility issue for DSC's STP software quality control. Given that these events are occuring in real time, we do not have any sense if these recent issues will impact DSC's STP business in the short to intermediate term. These issues, however, could only be neutral at best. UBS Securities LLC makes a market in this security. ÿ