From: gary@cdthq.UUCP (Gary Heston)
Date: Fri, 11 Dec 92 21:44:23 CST
Organization: Garys' Home for Obsolete Computers

jmuth@pyrps5.eng.pyramid.com (John Muth) writes:

> In article <1992Dec8.200535.13247@athena.mit.edu> xmw@athena.mit.edu (Xiaomin
   [about Comptronix]
> >Anyone out there know anything about the current situation of the
> >company? How bad is its financial and operational situation?
> >If the real situation isn't as bad, the company may be back to its normal 
> >production pretty soon, than this will be a good moment to buy 
> >comptronix stocks. Any input?

Comptronix is a competitor to my employer (in some areas of our
manufacturing; as far as I know, they don't do plastic moulding
or aluminum casting, nor any military work). They are based about
20 miles from here (in Guntersville, Al.; I'm in Huntsville).

Two of the three founders of Comptronix left my employer to start
the place up. One, William Hebding, was vice-president of accounting.
The other, Shifflett (I think) was a commercial manufacturing VP.

I personally wouldn't trust Hebding any further than I could pick
up their building and throw it. They have hired a number of people,
from techs to vice-presidents, away from work, and we are under 
orders to not discuss business with anyone working there (in fact,
anyone turning in notice to go there gets walked to the door 
immediately; they aren't allowed to work out the notice). The hirings,
however, have nothing to do with my opinion of Hebding. I worry
about my former co-workers right now.

> You left out the series of "questionable" Comptronix put option
> trades in the days before the announcement that the SEC is investigating.

Yes; there are a couple of trades by Huntsville firms that are being
investigated; when you sell at $22 and the stock drops to $7 a week
later, expect the SEC, even if you're legit. One of the sales was
by a parts broker that dealt with Comptronix.

> Given the stock price was based on earnings numbers (both absolute and the
> year-to-year trend) that bore little relationship to reality, who knows 
> what the stock price will be when this mess is straighted out.
> 
> IMHO, buying now would be gambling, pure and simple (not that gambling is
> necessarily bad, mind you).

I would regard it as a long term gamble. Today, CEO Hebding got fired
by the board of directors; the statement was quoted in the local paper
as claiming that the initial statements that were made to the board
were misleading, incomplete, and in some areas, false. The auditor
(Peat Marwick?) also resigned. The stock is now around $4.
The board is considering filing suit against Hebding, but I don't 
know if he has any substantual assets to recover. This wasn't a 
case where anyone was siphoning off money; they were apparently
falsifying numbers. I suspect most of his worth was in Comptronix
stock....

I don't forsee any near-term rise. I wouldn't be suprised to see 
a little more decline in the stock, either. This would definantly
be a long-term gamble; only use money you can afford to lose.

Note: I am *NOT* speaking on behalf of (or with the knowledge of)
my employer, and I have *NOT* spoken to *anyone* at Comptronix about
this or any other matter. All my information has come from the local
paper and news reports, other than my memories of Hebding.

Gary Heston, at home....
gary@cdthq.uucp
Newsgroups: misc.invest