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SF, I can't quite agree with you rosy assessment of XECOM. First, in my opinion, you can't really describe XECOM's customer base as "growing at an astronomical rate." XECOM had approximately 32,000 subscribers as of mid November 1997. AS of mid March '98, there are 35,572 soldiers signed up. Not bad; but not growing astronomically either. It's about 700 soldiers a month. I'd like to see the breakdown month by month from November 1997 to March 1998, since we are led to believe, by FIG, that the rate of sign-ups at the military bases is increasing. We're also told that the billing backup is getting under control. Second, XECOM's balance sheet isn't "very strong," as you state. Gross revenues have improved every quarter for the past five quarters, between 18% and 25%, and the company has posted an operating profit. But, of course, XECOM has never approached a net profitable quarter. It is the opinion of this investor that if revenues can continue improving at a steady pace, you will see XECOM trading at better than .16/.18 at some future point. That, I assume, would make you a very happy camper. Your XECOM friend, TJS |
