The following is taken from a recent DJLDirect report:
"After announcing a purchase order of 27 "Superfilters" on
Tuesday, SCON's stock ran from 13 1/8 to a Thursday high of 45 1/2.
But SCON's "Superfilter" is not new and faces competition from several
similar products. According to Phil Denning from SCON's PR firm, SCON
started selling their "Superfilter" product in 1997. SCON reports
total sales of their commercial filter products, from introduction in
1997 to October of 1999, were only $3.39 million. From 1998 to 1999
SCON reports improving 9-month sales by only $234,000, to a total of
$1.27 million, even though SCON offered their biggest customer a
warrant to purchase 1 million shares of SCON stock at $4 per share as
an incentive to execute a purchase order during that same period.
Meanwhile, the source of the majority of SCON historic revenue is
down. SCON reports; "91% of our past net revenues have been from
research and development contract sales directly to the government or
to resellers to the government." A review of SCON SEC filed financials
show "Government Contract Revenues" declining approx. 30% for the
comparable nine months period from 1998 to 1999, with a similar 26%
drop in year to year revenue from 1997-1998.
In summary, we issue this sell recommendation for SCON stock at
$40, with a 6 month target of $15 based on. "
Besides, SCON stock price is grossly diluted and discounted.
Ibexx |
