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Technology Stocks : Ezenia! (VSVR)

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To: General Crude who wrote (876)10/30/1999 2:28:00 PM
From: QuietWon  Read Replies (1) of 890
 
Someone on Yahoo mentioned they should do a share buyback:

This would be a mistake for VSVR until they are very confident that they will have blow out numbers why:

1. Buying shares back will shrink the mkt cap

2. As mkt cap gets smaller and smaller, fewer big investors can participate b/c of fund investment parameters

3. It will use their cash, which they may very well need for expansion

VSVR needs some organic/internal growth.

The partnership with VCST is using ISDN lines. Get real VSVR, ISDN is going out of favor.

Who would buy VSVR? Well, if they don't bring a complementary strategy, people, or a product, no one will buy them ie. will be left to fade away.

If VSVR is successful, it will mean more of "FVCX-inside" to the extent they are still using FVCX equipment.
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