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Published on: 10/12/1999
Last Visited: 9/7/2004
To halt this decline, AFC reassured analysts, including analyst Joe Noel of Hambrecht & Quist, that AFC would still achieve 1998 EPS of at least $.75, in part because GTE would remain a "major" and "very solid" AFC customer for low line count DLC applications; and that AFC was on track to obtain huge amounts of new business from RBOCs - Ameritech, PacBell and BellSouth.
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71. On November 6, 1997, Hambrecht & Quist issued a report on AFC, written by analyst Joe Noel, and, as is apparent from the face of the report and the exclusivity of the information, based upon conversations with AFC's management, downplaying the significance to AFC of the loss of the GTE contract:
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Thus, contrary to the information provided by AFC and its management to analyst Joe Noel at Hambrecht & Quist, from this point forward, AFC, having lost the GTE contract, would no longer be supplying the UMC system to GTE for low density markets.
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AFC denied these rumors to analysts, including to analyst Conrad Leifur at Piper Jaffray, analyst Joe Noel at Hambrecht & Quist, analyst Blickey at Goldman Sachs and analyst Jim Kedersha at Cowen & Co.
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87. On May 27, 1998, Hambrecht & Quist issued a report on AFC written by analyst Joe Noel after he had discussions with AFC's management.The report stated:
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For example, according to a June 30, 1998 article on Bloomberg, analyst Joe Noel of Hambrecht & Quist stated: "This comes as a complete surprise . . . . Investors will take this hard."