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Technology Stocks : Command Systems, Inc. (CMND) -- Ignore unavailable to you. Want to Upgrade?

To: P. Ramamoorthy who wrote (1803)	1/22/1999 8:32:00 AM
From: JDN	Respond to of 1956

Dear Ram and all: I hurredly scanned the amended S-1 (I have read the previous 2 amendments and have grown tired of rereading the whole damn thing) if you wish to access it here is URL freeedgar.com I think upon rereading it if one reads the risk factors section it basically probably is the reason stock price so low. Among other things, in a nutshell, the company has RAMPED UP for higher margin business but to date increase has been in Staff Augmentation (lower margin business) that coupled with the costs of ramp up likely explain the reason for the poor showing last qtr presented. As to the Class Action suit the settlement exceeds $5MM but all but 1.65MM is covered by either insurance or attorneys malpractice insurance. In my judgement the selling shareholders ought to be responsible for the 1.65MM as it was their stock which created the problem but there is no indication that is the case from what I read. Looking to the future, I suspect, so long as they dont have continuing ramp up expenses that likely (absent the settlement costs) they will be profitable EVEN with the lower margin (staff augmentation) business so long as they are reasonably fully employed. As of 9/30 I believe their total employees approach 400 with about 360 being professional rest sales and administration. As to our getting back to a reasonable stock valuation (say in the teens) it appears that it will be necessary for them to effect a switch to higher margin business and that may take some time as Y2K work is rapidly diminishing for them. Being realistic, my target will be for the stock to get back to the 7ish range by this calendar year end and then IF I see the business percentage improving set a target of around 14 the following year end. JDN