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To: Stephen McCullough who wrote (95)	5/30/1998 2:06:00 PM
From: Scott Schmitz	Read Replies (1) \| Respond to of 189

I agree. Although, I am uncertain if it has bottomed out yet. The 30 day stock chart shows that the price is still trending down a bit. However, this is a stock I am willing to back the truck up and buy significantly once it hits bottom. Given the amazing inventory they have built up and the total foul up in doing a stock buyback when the price was at $27 I would expect that management only needs to do respectable this Christmas and show the inventory is gone in order to start the stock on an upward bias. One thing that is a problem. The CFO and CEO (now both gone) lost all respectability with institutional shareholders by not warning of the inventory problems 8 months ago. This is a problem that was clearly there in October and should have been been noted publicly and delt with swiftly. When something like this happens, there's a real opportunity to purchase the stock while it is being "punished". Instititional buyers hate suprises (son't we all!) and especially hate it when they listen to the CFO tell you everything is OK and then they read the quarterly report and it shows $70 mil in inventory. You either have to think the CFO is incompetent or has just lied to you. Either way, they guy is dead and needs to be fired. Which was done.

To: Stephen McCullough who wrote (95)	5/31/1998 9:31:00 PM
From: Ron McKinnon	Read Replies (1) \| Respond to of 189

Steve I'm not sure that there will be any near term fundamental to pop this baby but that chart is starting to look like a true base is in the process of forming. If it breaks down below 15 I may bail for a bit (unless the sell off is market related, not stock related) and a move above 16-16.25 that holds may signal a add buy for me. I will average up for sure with a move above a few moving averages and >> 18/20should trigger tons of t/A signals. My near term plan is to hold a core position and take 1/2++ flips on a piece or two. It might be one to play over and over again for some time but time will tell.