**Response from Joe Lanza**
Jack, I never sold you Xecom nor have I told you to sell. Hell, I've never even met you.
So I cannot and will not take credit for your purchase of Xecom. As far
as your selling and taking a loss, I am a shareholder and I consult the management.
I Like Xecom. I, like others, do NOT like the price - which has
nothing to do with me. I am not playing games with the price and either is anyoine I know personally.
What follows is my opinion only, and I am saying it only to keep the record straight.
Xecom Mgmt stated they hoped for sales of 10 to 12 million this year
(ending Dec. 31, 1997). I do not see this happening, not at this point.
Xecom has acheived around 3 million for 6 months. I was hoping
that during the 3rd quarter would do 3 million plus in sales. I think now it is going to be 2 million max.
The reason for this is the 12,000 cut off by Sprint, which will cost us about a million in sales at least.
The question is, can Xecom generate 5 to 10 million in sales during the last
quarter? I don't think it can, however, I could be wrong.
Let's look at some values. Let's assume that Xecom does 8 to 9 million in sales
and let's also assume they have 3 million plus to pay ther bills.
The expenses are around 4.2 million, not counting depreciation which
will be another 3 million or so. So it appears that all the losses
are just about covered. In a short breath, that is all the bad news
I can think of, and that does not merit a stock price of 60 cents.
If Xecom can come close to doubling or more every year - you tell me what it is worth.
As an investor I want more, however, I do understand start-up business
and looking at the past, I cannot be unhappy with the compnay - only with
old management.
In conclusion, Dan and Jack, and others, you can blame me if you like
for buying the stock but I have never advised anybody to sell it, so
if you guys want to sell it and take losses, that is your choice,
so you can stand up and take a bow and grab the credit - I will not take
that responsibility. I tell people these are long term holds.
No one knows what is happening as far as price goes. Dan, you
lost $20,000. I am down millions at the current time but I still plan
to make all my money back plus a profit. So we'll see. [And just by
the way, Dan, you got THREE issues of "Profit" for free - news stand
price is $6.95.] |
