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Technology Stocks : STAR Telecommunications (STRX) -- Ignore unavailable to you. Want to Upgrade?

To: Bill McCullen who wrote (177)	7/7/1998 10:37:00 PM
From: Terp	Respond to of 780

I wouldn't doubt that their sell is strictly due to the action of the stock the last few days. I mean really, has the story changed that drastically in the last three trading days that this company has become a sell??!! Did all there international deals fall through or something? Look at all the telecom stocks. They are not fairing well right now. I think the earnings will tell the whole story here. Unless this were some type of cheap start-up company, how could you issue a sell unless you knew something disasterous were about to happen?

To: Bill McCullen who wrote (177)	7/7/1998 10:55:00 PM
From: Terp	Read Replies (1) \| Respond to of 780

Here are Star's CEO's comments with regards to today's downgrade by Kaufman: Christopher Edgecomb, STAR Telecommunications' chairman and chief executive, stood by his company and the merger with PT-1, slated to close in the third quarter, describing Kaufman Brothers analyst Grover's comments as "false." For example, Edgecomb said neither STAR Telecommunications nor PT-1 is currently losing distributor customers. "Every month we do more in revenues than the month before," he said. Responding to Grover's assertion that PT-1 is at risk of noncollection of accounts receivable, Edgecomb said, "Bad debt write-off at PT-1 is less than 1%, which is an industry-leading number." He added that the debit card business is unique in that the seller has the option of simply "deactivating" - and rendering useless - any cards that haven't been paid for in the allotted time. Most of PT-1's credit terms allow 10 or 15 days for payment, and its most generous credit policy of 30 days is extended only to long-term clients, he said. In response to Grover's allegation that PT-1's management team is experiencing turnover, Edgecomb said, "It's absolutely untrue to say that a senior manager has left." PT-1. Vice presidents and above have signed contracts to remain with the merged company after the deal is finalized, he added. Finally, he said that an audit on PT-1, conducted by KPMG Peat Marwick, will be released within two weeks. "We don't see any pending regulatory difficulty," he said of the merger. Edgecomb said he first learned of Grover's views in an e-mail Tuesday morning. THIS IS A NEWS RELEASE RELEASED TO DOW JONES IN RESPONSE TO VIC GROVER'S PRESS RELEASE EARLIER

To: Bill McCullen who wrote (177)	7/7/1998 10:59:00 PM
From: Terp	Respond to of 780

I will be buying in the morning. Read: <<I have traced back Kaufmans opinion on STRX...and it doesn't make sense.Initiated Coverage on May 7, 1998 "Buy" with $39.00Downgrade on June 22, 1998 "Buy" to "Hold" $29.00Downgrade July 7, 1998 "Sell"I ask, what kind of an analyst is so undecided that he changes an opinion 3 times in 8 weeks. This doesn't make sense. Whereas analyst who have been covering this company since it went public are "consistent" in their opinion. I am certain these "old time" know what is going on in STRX.CHris has mentioned that "we performed exhaustive research and 'due diligence' on PT-1 including hiring outside sources to completely study the company and its business" Post#889 jun13.I'll believe PT-1 is a good aquisition because the analyst who know the company - FS, BS, MS say it is...and Chris, as well as his, "DUE DILIGENCE" study have said so.>>