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Technology Stocks : ESST-the new beginning. -- Ignore unavailable to you. Want to Upgrade?

To: DiViT who wrote (2307)	1/27/1999 9:56:00 PM
From: Steve Reinhardt	Read Replies (1) \| Respond to of 3493

DiVit, I agree with you that the CUBE price drop is UNWARRANTED. There was an explanation (or similar patter). Remember when ESS announced in 4/97 about the Platform purchase on their conference call. The next day stock price dropped $8 or more than 20%! The psychological analysis is: (1) If the company has to resort to buy in order to compete, then the original assessed value may be too high; (2) The purchased company will spend more before they can earn profits for the company; Many people fault CUBE for making the mistakes of the announcement. My take is that the acquisition has been finalized, therefore you need to disclose it in the conference call. If you disclose it after the CC, you may get a shareholders' suit. Since ESS really buck the losing trend and did much better than the expectation, I would rather think the street will react somewhat favorably for tomorrow and Friday. The real test lies on Monday when all ESS employees are free to trade. It will be a testimony of faith in ESST. Steve