TheTruthseeker.com Initiates Coverage on Ariel Corporation,( NASDAQ:
ADSP ), with an immediate SELL RECOMMENDATION.
In light of the recent news announcements, made by the Company , we felt it
was necessary to dig and try to find the truth under the PR.
Here is what we have determined to be the facts.
Ariel's RS4200 PCI Interface card is nothing more than a T1/PRI Interface
card for the PC. Basically this card is not what it seems and has major
drawbacks. The card is merely the T1 Interface with 96 modems. It is not
one card but 2. The card requires the Computer to be the router. This is
not acceptible to the ISP because the computer is an extremely poor router
because of speed. The PC can't process IP packets and route them as quickly
as a router. The fact that they were able to achieve ceritfication for
EUROPEAN, CANADIAN, and US digital telco systems is not a major feat. They
can read the specs and follow them. Every router has certification for
these telecommunication networks. ASCEND, CISCO, LIVINGSTON, BAY, all have
these certs. The difference is that these terminal servers are also routers
which give them a major advantage in reliability and performance. The major
problem here is that the RS4200 cards are nothing more than an interface
that depends on the services built into Windows NT Server or LINUX.
CNBC, erroneously interpreted remote access to mean a wireless solution ,
"Nothing could be further from the truth, this is using a standard T1/PRI
line to provide 56K and ISDN access to the Internet . This technology is a
saturated market with far superior means to provide this service. The
future is in broad band technology not a PC based terminal server which is
what the RS4200 is.", according to Carmen Grasso, President of Computer
Integration Technologies, Inc. a small sized ISP provider trading as CIT
Network Services located in Thorofare, New Jersey.
The RS4200 product was originally announced on 10/18. This introduction had
no affect on ADSPs stock price at the time. However, the recycling of this
PressRelease on 11/24 resulted in a frenzy in the stock market .What was the
difference the second time around? In the 11/24 release, Ariel announced
that they had received "Worldwide approvals For Connection to International
Phone Networks".. A very convoluted way of saying that their system works on
phone lines. All similar products from 3Com et al. are also routinely
certified every day and every week but are never mentioned in a Press
Release, according to Mr. Grasso.
Additionally, we have discoverd that Ariel has no manufacturing facility
and is
simply repackaging a product made by Mapletree, mapletree.com ,
which can be OEM'd By anyone in the marketplace, even The Truthseeker
himself can
sell these PC cards, which he intends to do on bigamazon.com for
a savings of 50% off of the price charged by Ariel, making the Truthseeker
the new low price leader in this microscopic segment of the market.
The final point and most important piece of information is that Ariel is
consumed
in red-ink, is almost out of cash based on their most recently filed
10-Q. and based on the current burn rate and cash vailable , they have
approximately 6-9 months of working capital left and have seen a tremendous
decline in revenues.
Couple all these factors together and we place a 12 month price target of 1
to 2 dollars.
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service site. TheTruthseeker.com issues Truthseeker Reports on a
weekly basis. Some of the past reports by The Truthseeker include
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