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Technology Stocks : Wind River going up, up, up! -- Ignore unavailable to you. Want to Upgrade?

To: mac who wrote (4130)	1/26/1999 3:23:00 PM
From: Richard Forsythe	Respond to of 10309

I agree that the H&Q action is suspicious. A bank doesn't suspend coverage because a phone call placed at 1pm ET on Friday isn't returned before noon (ET) Monday when they issued the suspension. I think they were planning to downgrade all along, and that this has caused both the struggle to break $50 and the dramatic collapse on very minor negative information. H&Q then respun their downgrade to improve the appearance. It's my theory, anyway. Richard

To: mac who wrote (4130)	1/26/1999 3:55:00 PM
From: Ronald Paul	Read Replies (2) \| Respond to of 10309

Mac, I did struggle a bit with why WIND felt it necessary for Kraber to talk last Friday. In that light, I mis-spoke by stating that WIND was faced with a binary choice. Rather, it seems reasonable that they felt the current circumstances did not justify a pre-announcement "warning" but that it was prudent to make some type of pre-earnings statements in light of the uncertain nature of how the quarter will stack up against almost superhuman performance 20 quarters running; all amid unrealistic expectations. WIND may have come to a conclusion that if they did not pre-announce, the circumstances would have left many more black-eyes and bruised feelings than by pre-announcing. They may have mis-calculated by the way the market reacted anyway. Anyway, it is all speculation on my part. In any case, it is significant that they decided to say "something" now, rather than later. Setting everyone's expectations around 27 to 30 cents has the real possibility that they could come in at 27 cents - 2 cents short. I appreciate knowing that now. The H&Q reaction remains quite puzzling to me as well. My guess is that for whatever reason, Sheila Ennis was caught off-guard and is miffed. Feeling compelled to dredge up INTS and MSFT in justifying suspension of a rating reflects more on her frustrations rather than on the facts in this case. Cheers, Ronald Paul