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Technology Stocks : Reliability Inc (REAL) -- Ignore unavailable to you. Want to Upgrade?

To: Christopher Brainard who wrote (506)	1/30/1999 6:45:00 PM
From: jason	Read Replies (1) \| Respond to of 542

Can't believe this gem is still sitting at this basement price of 5. With a book value of $4.26/sh, of which $2.42 is in cash, zero long-term debt, a price to sale ratio of 0.7, and an improving business environment, the company will sooner or later be taken over by someone unless the stock price rises to a more reasonable level, which to me is at least in the 8-10 range. I am accumulating the stock at this level and believe others will follow soon. Long MSFT, AMAT, ABOV, and MBK. Bluesky Qin

To: Christopher Brainard who wrote (506)	4/1/1999 2:16:00 PM
From: pt	Read Replies (2) \| Respond to of 542

Insiders stopped selling REAL and have been accumulating it this year. quicken.excite.com also biz.yahoo.com (you may have to regenerate the page). These two sites aren't reporting exactly the same data, but both show only purchases and option exercises recently (no sales since last August), with most of the purchase activity coming in February this year. To state the obvious, Wall Street has not treated REAL's stock well since the October '97 panic and melt down. There are a lot of reasons for that, but what's ahead now? IMHO, REAL is now absurdly undervalued, selling for less than book value and only about $1.50 per share more than their cash in the bank. The management of this company has been through cyclical slowdowns before, and Larry Edwards has proven well his ability to bounce back from adversity. When considering the question "would you buy the company?" consider the management you are buying at this bargain price. Will the stock go back to 30? No, not in the reasonably foreseeable future. But will they get things turned around? I am confident they will, and company insiders seem to believe it also. We may have to wait a long time for the market to stop trashing all small caps, but I am resolved to wait patiently for the payoff to come. Disclosure: I finally bailed out of REAL in the low double digits (during the bounce when the newsletter hyped the company), but I have now bought back in at 3.75. Paul