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Technology Stocks : Quarterdeck: Making a Striking Comeback! -- Ignore unavailable to you. Want to Upgrade?

To: Anthony Darmanin who wrote (2796)	4/29/1998 10:07:00 PM
From: Jesse Livermore	Read Replies (1) \| Respond to of 3307

Jesse from Yahoo: This is what I was saying about a possible per share revision later. If they use the dilution, say 55 million and they restate last quarters earnings per share it will be less than 0.16 and I think you are correct. 60% of the preferred holders have converted and we are looking at the other 40% to declare within the next week or so to take advantage of the low of 1 3/8. I figure that brings the dilution to less than the 67, probably more like 55 million (if my math is correct). So we have the dilution satisfactorily resolved. That means no more shorts and no more selling into rallies like before. Some of these late converters might actually be convert and hold types, like Marubeni Corp, which just opened Quarterdeck Japan. An earnings per share loss less than it appears with New products, hopefully selling, the new network division sales in the works ahead of schedule, very low overhead, 22 million cash, no threat of excess returns burning current earnings, and a low stock price looking at a surprise blow out quarter coming up: I couldn't write a better script for insiders to load up cheaply if I tried with all of QWAY's best minds. I think there is something in the wind, here. I wish I had a sure fire confirmation but I do not. I have no insider information as I have too much to lose in the real world to try stuff like that. This is a hobby and hopefully a book for me and QWAY. Besides, it is a lot of fun and kills the stress of the daily routine. But, I digress... As confirmation I would say insiders should not let the price drop too much if there is intrinsic value. Remember, quarter 3 is 1/3 complete and the late March momentum was building in the retail USA market. If the net sales, over seas sales, anmd telemarketing sales kick in we will have an earnings surprise. The products have awards all over the world so they should sell, no? It should hold above 1 1/2 if I am right. Nothing propels a stock like earnings growth. If they hit the street with 20 million in sales, an obtainable mark, then we are saying quarter to quarter revenue growth of 53%. Couple that with an earnings per share of $0.05. The headline will read: Quarterdeck announces 53% quarterly revenue jump with quarterly earnings of 0.05 vs prior quarter's loss of 0.16 per share. Curt Hessler, CEO, said: He was very happy to report that the patience of Quarterdeck shareholders has been rewarded. Revenue growth is on a steady course and our objective of quarterly revenue growth and profit growth is back on target. So, the street will factor in another .05 a share and value QDEK at some irrationally exuberant PE like 90 and we have a $9 stock going into August. Call me a QDEKaholic (because I am qdekaholic #1) but I like the risk reward ratio to my scenario.

To: Anthony Darmanin who wrote (2796)	4/30/1998 3:26:00 AM
From: Dale Stempson	Read Replies (2) \| Respond to of 3307

Tony, I believe the bottom line here is simply that the difficulty of achieving success has increased due to their weakened financial condition, and management's credibility has taken a significant hit. The recent buy recs had a lot to do with why QDEK is up 30% from a week or so ago, and while this will provide some support for the selling that is about to occur, I believe that we will end up trading lower for awhile. Regardless of where we end up over the next few days, I will be left wondering where we might have been if QDEK had reported earnings in line with their pre-announcement. Yes, there was positive information released today, but nothing really unexpected. The negative information was unexpected. This adds up to bad news and I don't like it. I sincerely hope I'm wrong about how the trading will go, but I think there are a lot of new QDEK investors out there who were hoping to see the price leap beyond $3 with the recent run-up and ended up holding through the subsequent pull-back. Up until today, it would have seemed logical for these newbies to at least have held short-term to capture some of the upward trend. With the pre-announcement already out, coupled with the new buy recs, the downside risk would have appeared very minimal, and the chance that actual earnings might come in slightly better than expected would have seemed possible. Today's news stretches out the timeline and impacts the trend. I think there will be quite a few out there who won't want to wait. Regards - Dale