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Technology Stocks : p-com (pcms) -- Ignore unavailable to you. Want to Upgrade?

To: David K. who wrote (887)	12/30/1998 7:58:00 PM
From: Bernard Levy	Read Replies (1) \| Respond to of 1461

Hi David: I have been looking at this company for a long time from the sidelines. I think that P-MP technology has a very promising future, so I was looking at it as a possible long. However, the huge loss last quarter made me suspicious that a turnaround was achievable. The floorless convertible clinches it. I would recommend selling into a major run up-- although the floorless convertibles are like a dagger hanging over the head of this company, it is frequent to see a major run up before the final slow death. So, if you see PCMS run to the $5 to $6 range, sell. I am not very keen on shorting in general, but if PCMS trades above $5 or $6 in late March, I will give it a close look as a short opportunity. Best regards, Bernard Levy

To: David K. who wrote (887)	12/31/1998 12:42:00 PM
From: Rob Preuss	Read Replies (1) \| Respond to of 1461

David, In this case I'm wary of the press releases. Yes, its nice to know that PCMS is getting its regular ho-hum orders in as expected and sales are not shrinking to zero... but that's not usually the stuff that press releases are made of, so I wonder why we have them now. To me, press releases are for something "special" going on... big orders, first orders of a new product, first orders in a new market/region, or whatever. They may as well announce that they paid their electric bill on time (to reassure investors that they can still pay their bills). With all these press releases since October... why the runup in price just now? Lack of insider buying coupled with all this confusing stuff about floorless convertibles has me concerned. My guess is that Bernard, Zeev, et alia are correct... the stock will rally to about $6 before 5/14/99 and then plummet. But I'm neither long nor short PCMS at present and I'd really like to understand things alot better before jumping in on either side. While there may be some long-term viability for the company and its products, I feel that management actions may have created alot of short-term volatility in the near future. Such volatility can mean opportunity if you know what's what, but if you're not on top of things you might get hurt badly. I believe a big part of investing profitably is avoiding getting hurt badly... not just finding the next 10-bagger. Rob