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Technology Stocks : Smart Modular - diamond in the rough? -- Ignore unavailable to you. Want to Upgrade?

To: MileHigh who wrote (1310)	5/16/1998 10:25:00 AM
From: Andreas	Read Replies (2) \| Respond to of 2020

smod IS POLITICALLY INCORRECT! What I mean by that is simply this. Smod cannot play the wall street game. Look at Dell for instance. Now there's a stock with great earnings but. The earnings alone and future prospects do not justify the multiple. Why the sky-high multiple? In part because Michael Dell works wall street like Donal Trump works the crowd at one of narcisistic galas. Michael Dell is on the phone hyping Dell, giving rosy pictures of Dell, holding analysts hands, wining and dining them and doing a great job at convincing wall street that dell is the greatest thing since sliced bread. Then there's smod. And wall steet says "smod who". "Oh yea, isn't smod that supplier of memory modules that we can't get any information on. Isn't that the company with the CEO that has all the charisma of Lurch from the Addams family? That's right. Are they still in business? Haven't heard a damn thing about those guys." And so it goes. Silence creates uncertainty. Uncertainty creates fear and fear creates increased supplies of smod stock looking for new buyers. When cpq was telling the world that its channel was stuffed to the gills, Michael Dell started beating his drum and letting everyone know that his company was no cpq and did not have the problems that cpq had. When cpq said that pc demand wasn't what they had expected Michael Dell came out and said dell's demand was greater than expected. Smod will only move up on great earnings news and will move down on any rumor out there. There are a million reasons why smod will sink lower. There is only one event that will cause it to move higher. I always get a chuckle when someone posts that smod is about to turn around because someone in the pc industry makes a positive comment concerning demand. Well, it just doesn't happen. Smod will go up when earnings go up. Until then just watch it sink every time some new rumor gives somebody the jitters. After all, it's not like smod will ever come out and say anything positive about their company.

To: MileHigh who wrote (1310)	5/16/1998 6:14:00 PM
From: JFD	Read Replies (1) \| Respond to of 2020

Perhaps CPQ clearing their inventory is affecting them. I think I can shed some light on the Customer smod lost. This is from The Tanisys Technology 10q. " LGSA and its affiliates are suppliers of semiconductor memory products worldwide to, among other customers, Compaq Computer Corporation ("Compaq") . Recently, Compaq and other customers have institued new purchasing procedures referred to as Configure to Order (CTO) and Build to Order (BTO) programs which require LGSA and its affiliates to provide memory modules to various customer locations throughout the world within forty-eight hours of an order for such products, Tanisys has been qualified by Compaq to manufacture memory modules for Compaq usind LGSA component products. Tanisys is establishing a manufacturing center in Scotland in the United kindom to provide further manufacturing of memory modules. LGSA and its affiliates wish to engage Tanisys through its new Scotland facilities and its other facilities to provide manufacturing services for LGSA and its affiliates for distribution to Compaq, as well as such other customers of LGSA and its affiliates as may be requested from time to time, and Tanisys wishes to be engaged by LGSA and its affiliates to provide such manufacturing services, all in accordance with the terms and conditions set forth in this agreement." LGSA is LG semicon America. There is also an agreement with Toshiba in the 10q By pointing this out, I am not saying smod is going down. smod is the leader in the outsourcing business and IMO has a great future. there is more business than they can handle and others will benefit. jfd