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Technology Stocks : NewCom (NWCM) -- Ignore unavailable to you. Want to Upgrade?

To: Ralph Ulisse who wrote (557)	8/6/1998 7:15:00 PM
From: John Dee	Read Replies (1) \| Respond to of 662

This letter was sent to Joseph Charles today by a well-known money manager. It is copied here in its entirety: 8-6-98 Joseph Charles Securities Attn. Compliance Department 2415 E. Camelback Road Phoenix AZ 85016 Dear Compliance Department, As you are aware I am a large institutional client of your firm and have participated in several of your underwritings and bought several stocks on your analyst recommendation. One such stock that I bought through Joseph Charles in the Initial Public Offering and then later added to my position due to your research report is Newcom Inc. As you are aware I had a failure to deliver on a purchase of Newcom stock last week, which besides casing major problems with my prime broker also raised major red flags. Bear Sterns, your clearing house, indicated that they were short the stock which was causing a "failure to deliver". This occurrence encouraged me to do some investigating and what I found, at least on face value, is extremely disturbing. The DTC sheets as of three weeks ago show Joseph Charles as owner of some 165,000 shares of Newcom stock. The most recent DTC sheets show Joseph Charles as the owner of only around 100,000 shares at this time. A polling of key holders with Joseph Charles indicates that as of today they are still beneficial owner of at least 265,000 shares. This means that Joseph Charles Inc., and or its trader, has a current short position in the stock. If this is true, Joseph Charles has set a short position in a stock that it has a "strong buy" recommendation on. Even more disturbing to me is that you possibly have a short position in a stock that you have dealt with on a investment banking basis and possibly have traded on negative inside information. Rest assured that I am going to do everything in my power to find out if this is the case. Should I find this to be true I will instruct legal counsel for Titan Capital Partners, on behalf of its partners, to aggressively pursue recuperating, from Joseph Charles Inc., all losses incurred in this stock, which to date runs in the millions of dollars. I truly hope this is not the case. Sincerely, (signed) Stephen J. Fischer Fund Manager (Titan Capital Partners LLC)