PSIX up 26.5%, Takeover(?) Message Board

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Technology Stocks : PSIX up 26.5%, Takeover(?)

PSIX 54.15

+2.9%

12:59 PM EST

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To: Curtis Gruber who wrote (5079)	10/2/2000 2:40:36 PM
From: telecomguy	Read Replies (1) of 5650

Curtis, I see you are still here! I rode Psix from $5 (pre-split) all the way to $30 & then dumped everything when I saw that the profit margin was simply inadequate to support a profitable business. As I recall, their GROSS MARGIN was improving but only because they were migrating their traffic off the leased circuit to the "owned" circuits -- effectively putting their variable gross margin cost from top line to the overhead section under amorization of fixed assets (indefeasible right to the fibre). I recall predicting that Psix based on their business model will not be able to generate enough cash to become cash positive....... Nothing appears to have changed and Psix wil probably drift towards Chapter 11 unless the CEO eats some crow and accepts a watered down takeover bid.

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