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To: feltburner who wrote (6723)	7/1/1998 11:11:00 AM
From: Jeffrey S. Mitchell	Read Replies (1) \| Respond to of 10786

118,000 shares traded in the first 1.5 hours. ALYD is certainly getting noticed by someone. I also hear the short interest is up over a million now. The question is what does everyone expect for this stock as regards 2Q earnings? Based on contract announcements, I've formed the following Y2K "Mitchell Wave" theory: In late '97 we saw the first wave of Y2K contracts. These came from a combination of companies who either started in the mid 90s and who knew the complexities of doing it yourself, and those who, after doing (in many cases, free) pilots, saw the benefits early on of outsourcing right from the start. This left the remainder of companies to either go the internal route, or just procrastinate (like the US Government). Finally, over these last nine months, I think many of these same companies have come to realize that fixing Y2K is not as easy as they had hoped. I now believe many are starting to quietly look for help and what we are starting to see is a second wave of contracts. I also think that early July will be very revealing about this sector. Funds will be active buyers -- or shorters -- now that we are officially in q3. We'll know for sure by looking at volume. Should be interesting. Getting back to ALYD, I agree with you that, as shareholders, the important number is the EPS. If we go up 50% -- from .10 to .15 -- that would be fantastic... kind of. On the one hand, it will certainly prove beyond a shadow of a doubt the benefits of ALYD's factory approach-- how even a modest increase in revenues goes right to the bottom line. But as ALYD may still be perceived (incorrectly) as a "one-trick" Y2K company, then perhaps the focus might be on revenues not being as high as everyone had hoped for Y2K companies this late in the game. I think ALYD sorely needs a conference call around earnings time to help pump up support and break a potential logjam. - Jeff