Joe:
OK, I'll use the word casual, is that better?
Seriously, on more important issues, I think from the market makers
point of view they are operating in a trading market to their liking;
trading for the 1/8's, 1/16', 1/32's, etc., when you don't have to pay
commissions or other expenses is a great way to make money with a
stock that doesn't have much volume, except what they generate.
But unless that "surprise" you mentioned happens, It's hard to see the
volume picking up very much. The best surprise now, would be a
positive first quarter earnings report that makes everyone take
notice.
So, I agree that 1996, which we all know was a bad, will fade
into history as a building year, IF, 1997, starting with the first
quarter, shows that the building (and I might add, upheaval) of 1996,
has led to a profitable and growing company.
Certainly you are on the ground closer to Xecom than any of us, and we
shareholders rely on your observations and decisions to a great extent.
If you think positive surprsises are in store, great.
One thing you said does give me pause though. Your message to jeff
said that depreciation or interest expense might cut into earnings so
much that it is hard to predict the extent of profit for Xecom in
1997. I assume that depreciation and interest expense are known
items and can be predicted. Therefore, sales, income and other
expense are the items in question. So--
Is income growing at acceptable rates? Have sign ups slowed down?
If so, how much? Are the servicemen keeping the service after they
sign up? What is the drop out rate? Are bases being brought on line at
the expected rate? Will getting into the off base resale telephone
business recently announced, cause greater capital expediture? If
so, how much? Is it likely that 40 bases will be operating in 1997?
These are some of the questions that come to my mind and I am sure
they come to yours as well.
As usual, best wishes. And remember most of us really are rooting for
Xecom, even, I suspect, some who appear most negative.
Wes
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