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Technology Stocks : COM21 (CMTO) -- Ignore unavailable to you. Want to Upgrade?

To: Peppe who wrote (414)	5/24/1999 3:21:00 PM
From: pat mudge	Respond to of 2347

Peppe --- The downdraft has me completely puzzled. I had a long chat with top management over the week-end and the initial sell-off was based on analysts' misinterpreting his comments on pricing pressures. If margins move from 39 to 38% --- the amount one analyst mentioned --- it's within the expected range. No one has to change guidance. Considering the fact this market is just heating up, sales growth will far outpace any margin weakness. CMTO's far ahead of the competition. If you look at Terayon's SEC filing, you'll see they had negative margins last year and I believe are around 8 - 9% right now. I agree this is a buying opportunity, but the over-all market is making gains difficult. Pat