STMP<--------A MUST READ...!!!!
Dont laugh too hard!!!!
How about this statement that the compnay makes public,
"If our service is not approved for commercial release, our business will fail.
Our service for purchasing postage over the Internet has not been approved
by the US Postal Service. We depend entirely on US Postal Service approval of
our Internet postage service. We are currently in the pre-approval testing
stage of the US Postal Service's Information Based Indicia Program. We cannot
be certain that our service will successfully emerge from this testing phase or
that the US Postal Service will ever approve our service for commercial
release."
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NEXT
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How about this most timely of legal actions initiated this month:
"Intellectual property infringement claims, including a June 1999 claim against
us by Pitney Bowes, could delay our development and harm our results of
operations"
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Or how about this claim!!!!!!!!!
"
We face substantial uncertainty regarding the impact that other parties'
intellectual property positions will have on the Internet postage market. For
example, on at least three occasions, Pitney Bowes sent formal comments to the
US Postal Service asserting that intellectual property of Pitney Bowes related
to postage metering products and systems would be infringed by products meeting
the Information Based Indicia Program requirements. Specifically, in a number
of letters, Pitney Bowes identified a total of 19 US patents and four US patent
applications that it contends would be infringed by postage metering systems
that meet the requirements of the Information Based Indicia Program. Our
Internet postage service is designed to meet these requirements, which has led
Pitney Bowes to sue us for alleged patent infringement.
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19 Patents that would be infringed sounds like a brutal battle brewing
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Read ON!!!!
Specifically, on June 16, 1999, Pitney Bowes filed a patent infringement
lawsuit against us. The suit alleges that we are infringing two patents held by
Pitney Bowes related to postage application systems and electronic indicia. The
suit seeks treble damages, a preliminary and permanent injunction from further
alleged infringement, attorneys' fees and other unspecified damages. Pitney
Bowes filed a similar complaint in early June 1999 against one of our
competitors, E-Stamp Corporation, alleging infringement of seven Pitney Bowes
patents. If Pitney Bowes successfully asserts its claims against us and E-
Stamp, then we and E-Stamp may be prevented or hindered in competing in the
Internet postage market. We are currently investigating the claims against us
and have not responded to the suit. In addition, the litigation could result in
significant expenses and diversion of management time and other resources.
Further, if Pitney Bowes successfully asserts an infringement claim against us,
our operations would be impacted severely. The Pitney Bowes suit could result
in limitations on how we implement our service, delays and costs associated
with redesigning our service and payments of license fees and other payments.
Any injunction could eliminate our ability to market critical products or
services.
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This is my favorite paragraph
"We have a history of losses and expect to incur losses in the future, and we
may never achieve profitability.
As of March 31, 1999, we had not generated any revenues and had a deficit
accumulated during the development stage of $7.9 million. Our lack of revenues
can be attributed primarily to the fact that Internet postage has not been
approved for commercial release. In the course of our pre-commercial
development activities, we have not achieved profitability and expect to
continue to incur net losses for at least the next several quarters.<----->>>>>(Several Quarters means more than two and most likey much more than three...)<<<<<<<<<<<<<<< Due to the
need to establish our brand and service, we expect to incur increasing sales
and marketing, product development and administrative expenses. As a result, we
will need to generate significant revenues to achieve and maintain
profitability. In this regard, you should disregard our gross margin
projections of 85% contained in an online article published by a third party in
December 1998 and linked to our Web site. Our gross margins are very uncertain
given that our Internet postage service may never receive US Postal Service
approval, attain commercial acceptance or develop into a significant source of
revenues for us. We have additional uncertainty related to the lack of a proven
pricing model in the untested Internet postage market. It is likely that our
gross margins and pricing strategies will vary in the short and long term. In
addition, projections published by market analysts regarding our margins may
differ from our actual results.
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I particularly love the dissassociation with the Big article everyone cites when talking about STMPO..its a POS and should be shoreted till you bleed from your ears...Like Pitney Bose wont crush them in their infancy..get real
Now answer my questions I have detailed why I think its a BS stock and I used their own words!!
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