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Subject:  Re: To: Foobar73 Date:  10/3/2001  4:50 PM
Author:  foobar73 Number:  2176 of 36218

I noticed that you had RHAT as one of your investments. Just curious but did you buy this stock as a "train wreck". I'm sure you know what that means, but just in case. You bought it extremely low, like I did (SKLNQ)giving you hardly any risk (because if it goes bust you haven't lost much) but has small potential to regain in previous course. Your thoughts??

RHAT is not a "train wreck", at least for now. They have a reasonably stable cash flow, a good amount of funds in the bank, and their current losses are dominated by one-time writeoffs. SKLNQ, on the other hand, is bankrupt.

Perhaps what gives the illusion of a "train wreck" was the enormous hype that surrounded RHAT last year. The share price had been bid up well beyond any sane valuation of the business. I am of the opinion that the current share price is a reasonable valuation (perhaps a bit low) of the company's prospects, and I do not expect to see the price rise to the ridiculously high levels they achieved last year, at least for the next decade. Having said that, RHAT seems to be holding their own, and shaping up as a solid business.

This would probably be better served in the RHAT board, to which I invite you to post any followup questions you may have.
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