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Microcap & Penny Stocks : DecisionLink formerly FOCS

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To: coffee221 who wrote (9)10/9/1996 1:01:00 PM
From: Daniel Schulman   of 300
 
The large number of shares outstanding is the big drawback.
Your observation is astute, and the situation is even worse then you mentioned. Given the outstanding options, the base should be computed as 30 million shares outstanding.

The growth in outstanding shares stems from the companies prior need to raise operating funds during the lengthy switch-over from a research to marketing company. Due to marketing ineptitude, it took them a long time to record any decent sales. This problem has been resolved due to new staff, inital sales, and several joint agreements.

I am however still very strong on FOCS. Given their unique technology their able to price their products far lower than competing ones. In fact, competing products from my understanding are not only much more costly but not as good. This translates into high margins.

With high margins and rapid sales growth (albeit on a low base), the company should be in the black soon. I think the market will tolerate a high PE given these conditions, so any positive earnings should move the stock higher.
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