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Technology Stocks : CDRD (CD Radio)

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To: Eman03 who wrote ()6/10/1997 6:40:00 PM
From: david smith   of 904
 
Twice in the past I participated in this board when I thought that people who were shorting CDRD did not necessarily understand just how strong the story is, even among much maligned story stocks. First they got the licence. There are only two FCC licences that will ever be granted for this type of broadcast service and they have one of them. That is a huge asset and apparently has created the current market valuation of the company. The next stage will be getting customers and the key to that will probably getting the reception capability built into car (truck, tractor, boat, portables etc) radios at the point of manufacture. We will see what happens on that score but I can't help but think that the stock will pop up big time when the first announcement is made. Why? Because once someone like LEXUS installs it in all its cars, everyone else will follow like sheep.
Don't forget that after only about one quarter of one percent of the potential customers for this product have signed up that covers all the fixed and operating costs. After that every penny falls to the bottom line.
Will it happen? Who knows...not me. My point is that stories about dillution of stock are very relevant but are not the whole story here. Over the next few years there is very little bad that could happen to CDRD, and there is some very good upside news that could happen. It is several years before anyone will be able to say that this was a bad idea.
Good luck to all and I would enjoy seeing more substantive news about the companies main business. By the way, one further point. About the FCC licence not yet being officially transferred, that is the way it always works and there is absolutely no reason to think that the FCC will for the first time in its history decide to withhold the licence after the decision to grant has been made.
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