METRICOM - Wireless Data Communications Message Board

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Technology Stocks : METRICOM - Wireless Data Communications

MCOM 0.0120

-6.3%

Jan 26 3:46 PM EST

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To: david waitt who wrote (487)	10/20/1997 6:37:00 AM
From: StaggerLee	of 3376

I can't wait for these financials. Last quarter MCOM ate up $26 million in cash through operations, and sold off $29 million in short term investments to stay afloat. Meanwhile MCOM, a cutting edge technological company, hasn't updated the financial information on its web site since December '96. Not surprising -- I wouldn't want to advertise it either. Even if revenues increased 500% with no corresponding increase in expenses, MCOM STILL DOESN'T BREAK EVEN! There's a huge difference between COOLNESS and financial viablility. MCOM has not offered a vision for the future to suggest how they're going to achieve profitability. Where does it plan to go, and how does it plan to get there? At 4,000 new subscribers a quarter it simply can not survive! What's that, 250 THOUSAND BUCKS a quarter, excluding start up revenues? WHOOOOPPEEEE! In 60 years it'll break even! It's not like there's going to be any competition in THIS field in the next 60 years! Paul Allen has already won, or at least recovered somewhat. His 33% investment has quadrupled in the past few weeks. Good for him. But that doesn't solve MCOM's serious financial dilema: MCOM is already hugely leveraged, and needs massive cash infusion and massive subscriber growth to survive. I've heard nothing to suggest that they have any real plans to acheive either one of those objectives. Any guesses as to when the next secondary offering will be announced? MY guess is....hmmm...October '97! You think they're going to let this recent run-up go unnoticed? Nothing like diluting a stock that's already trading at 23 times revenues!

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