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Technology Stocks : TRANSNET TRNT -- Ignore unavailable to you. Want to Upgrade?

To: Nicholas P. Sekas who wrote (203)	3/30/1998 9:40:00 AM
From: Bob Davis	Read Replies (1) \| Respond to of 225

An "Overview Issue" of The Napeague Letter was e-mailed to each subscriber last night. These "Overview Issues" summarize the current status of each stock followed by TNL. This issue included the following comments about Trans Net (OTC BB:TRNT): After the market closed on Thursday, March 25th, TransNet announced the termination of its asset sale to GECC as the result of TRNT's loss of a major customer. A hypertext link to the complete press release is on the TNL website. I had an opportunity to talk with TRNT's management on Friday evening. During this conversation, I learned that most of the business done with the "major customer" is in the form of Hardware purchases, which are relatively low margin (as has been discussed previously in TNL). This relationship was reportedly terminated because TRNT could not provide the "global" hardware support that the client needed. Although it produces much less revenue, TRNT also has a Software & Support relationship with this customer, and the Company expects that this relationship will continue. Based on this information, I suspect that after this relationship ends in 6 to 9 months, we will see an abrupt decline in revenues, accompanied by a very much smaller reduction in gross profits. With regard to its possible reinstatement to NASDAQ, TransNet will hold its annual shareholders meeting on April 2, 1998, which will eliminate the reason for its initial delisting. On Friday morning, after the announcement, the price of TRNT fell to $0.75, but rebounded during the day to close at $1.09. This demonstrates the foolishness of taking any action in the stock market in extreme haste and panic. Bob Davis The Napeague Letter napeague.com