To: jas singh MD who wrote (1427 ) 4/5/1998 5:03:00 PM From: uu Respond to of 2616
jas: > I'm still not convinced that this is nothing more than HYPE. However, I remember thinking, while I was listening to the last conference call, that the company's estimates sounded VERY CONSERVATIVE if the initiatives that they were planing ever became reality. There are 2 different definitions of hype in my opinion. One is an irrational hype and the other one is a rational hype . Irrational hype happens when the company has absolutely no significant product and/or with any proof that its revenue and sales are increasing. Such companies usually ride the upside trend strictly based on idiotic rumors of buyouts, and/or just pure manipulation by market makers and/or just for the heck of it! On the other hand a rational hype is when the company has solid and sound products with proven track records of revenue and sales increase and growth. The stock price of such companies do go up based on somewhat speculations and not neccessarily more factuals, and this is mainly due to the fact that the sector the company belongs is very young and no one is aware of its true potentials yet ! Now consider CYBG, the company has sound, established and award winning products, its revenue had a jump of 62% for last quarter. Now considering the fact that the new computing model namely thin client/server centric architecture (as defined by Sun Microsystems) is growing at an astronomical rate, I could only conclude (and not speculate ) that companies such as CyberGuard will be the big money machine makers in the future (both immediate short term as well as long term). Based on that I feel absolutely comfortable to buy the shares at these ridiculously low prices (eventhough they seem to be the 52 week high for the stock)! so to answer to your question, yes, there maybe somewhat of a hype associated with the stock, however in my opinion this hype is absolutely rational and will soon be turned into facts. Regards, Addi Jamshidi