REREAD this news and you'll wish you had bought XYBR at $4 :
RAM CAPITAL ANNOUNCES INVESTMENT OPINION ON
XYBR; CITES STRONG EXPECTED REVENUE GROWTH
BUSINESS EDITORS NOTE TO EDITORS: THE
FOLLOWING IS AN INVESTMENT OPINION ISSUED BY
RAM CAPITAL PALM BEACH,
With patents in hand I see no upside limit especially if Transmeta has developed an advanced product which will only enhance the Xybr devices.
PALM BEACH, Fla.--(BUSINESS WIRE)--Dec. 1, 1999--
RAM Capital Management of Palm Beach Florida, has initiated an
investment opinion on Xybernaut Corporation, (NASDAQ: XYBR.O). We
believe that the company has entered into what may be their greatest
period of accelerating revenue and earnings growth, making the stock
undervalued at the $4.00 level.
Recent impressive strength in the stock of XYBR, has encouraged
us to state our opinion earlier than we initially anticipated. This
analyst has noted a recent upsurge in media coverage for "Wearable
PC's" without mention of Xybernaut's Patented Mobile Assistant; first
on CNBC on Friday Nov. 26, then on the front page of the business
section of the Ft. Lauderdale Sun-Sentinel, Saturday, Nov. 27, 1999,
and on Fox TV Sunday during the X-files. Although the media coverage
this past week has been featuring a product manufactured by the
Japanese unit of IBM (NYSE: IBM.N), and camera maker Olympus, we feel
that all wearable ships will rise with the tide and that Y2000 will be
the year of the Wearable PC. IBM confirmed their entrance into the
wearable market yesterday in a press release.
Xybernaut currently holds 450 patents surrounding the wearable
computer and its usage and on Nov. 15, 1999 won the coveted Grand
Prize for Best PC Product at Comdex Japan, for its future-forward
technology and its outstanding product design and engineering, beating
out 100 other candidates. The award presentation was widely covered by
the Japanese press. We feel it is only a matter of time before
Xybernaut and "wearables" becomes a household word.
America Online, (NYSE: AOL.N) was featured in the Dec. 6, 1999
edition of BusinessWeek, outlining their plan to get inside every
information appliance. The article focussed on their alliances with
Gateway, (NYSE: GTW.N), to develop internet appliances and home
networking devices; 3Com, (Nasdaq: COMS.O), to develop AOL branded
handheld organizers and AOL's email on the Palm handheld device;
Motorola, (NYSE: MOT.N), to put AOL's Instant Messenger on their new
wireless devices, and Direct TV, (NYSE: GM.N), to bring AOL to the TV
screen. The one area that wasn't mentioned was the wearable computer.
It seems reasonable to us, that eventually an AOL, or similar industry
giant, will turn towards Xybernaut, and bring either AOL, Microsoft,
(Nasdaq: MSFT.O), or other online service provider to the wearable
world.
This analyst has personally viewed a demonstration of the XYBR
MA-IV with attached hydrogen sensors manufactured by DCH Technology,
Inc. (OTC BB: DCHT.O), in April 1999 at the National Hydrogen
Associations annual conference, in nearby Vienna VA. The combined MA
IV with the Robust Hydrogen Sensor was a crowd thriller, as there has
never been real time critical data retrieval combined with reference
data available to the hydrogen safety industry; which is estimated at
a current $440 million annually, and growing. We believe that the
remote hydrogen sensing market will be just one of the many industries
where the Xybernaut MA-IV, will prove to be invaluable as both a life
saver in hazardous environments and in the maintenance and inspection
of plant machinery and equipment. One such application currently under
study is the $9 billion annual highway and bridge infrastructure
industries, and the multi billion nuclear power and petrochemical
industries, where we expect XYBR and DCHT to build a formidable
presence.
After dropping as low as $1.00 per share in September, XYBR has
rallied impressively to a high of 6 3/8 on Nov 14. Despite profit
taking, the $4.00 level appears to have held, and may now be support.
We believe this sets the stage for a resumption of the advance.
Because of it's highly volatile trading history, we have chosen
not to put a price target on the upside potential of this stock; at
this time. We do note however, that XYBR's 1998 high was $12 1/2, in
May 1998, and it would be logical to expect selling at that level, if
it were reached. At approximately 24,000,000 shares outstanding, XYBR
at $4.00 has a market cap of only $96 million. With the expected
launch in Y2000 of the IBM and Olympus product, (that doesn't even
have a keyboard yet), it is our opinion that Xybernaut's MA-IV, with
its patented and field tested keyboard design, and voice activated
command features, will be the major beneficiary of this international
marketing campaign, and is the basis of our investment opinion. |
