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Technology Stocks : NHC COMMUNICATIONS (TSE:NHC) acquiring THE FIBER COMPANY
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To: cleto who wrote (599)11/4/2000 6:32:28 PM
From: Lalit Jain  Read Replies (2) of 856
 
cleto,

Not much Newspaper coverage again on the Nortel/NHC deal.

1. NHC is a great company with some excellent products.
2. NHC has been very successful in forming key alliances with some heavy hitters like Nortel.
3. NHC has also recently received a $US75m contract for it's best-in-class product/service, the VCCS solution. Now this is a mega contract for a small company.
4. NHC is not a recent start up, but has been in operation for more than 10 years. It has growing revenues and is even profitable. Many others in the industry are recent start-ups and won't be profitable for many years.
5. NHC has a small number of o/s shares and a small float.
6. NHC's already strong and talented management has been very successful in adding experienced executives to it's team.
7. NHC has an International presence whereas it's competitors are mainly concentrated in the US.

SO WHY IS THE STOCK IN THE DOLDRUMS ?

Part of the reason maybe:
1. Most High Tech stocks have taken a beating recently. Some are down 90% from their highs. NHC has fared better than many small-caps.
2. NHC MUST have coverage in major national newspapers. It must bring in new investors. The existing investors already know how great NHC is. They have already bought the shares that they can afford.
- So, if new shareholders do not come on board, the stock price languishes and eventually falls.
- Shareholders get very annoyed.
- Some company will eventually come and scoop up at fire sale prices (maybe at a 25% premium to the current trading price).
- Shareholders feel very happy, but miss out on the long term potential (which in case of NHC could easily be a home run from the current prices).

NHC must get more investor exposure !

Regards, Lalit Jain
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