SirAlexx, You can go ahead and throw good money after bad on XYBR, but get this straight - I AM AN EMPLOYEE OF CDI NOT A PAID HYPSTER. I know a lot about XYBR because I am CDI's Marketing Director who competes head to head against XYBR. I have no stock position in XYBR.
Just watch the CDI and XYBR press releases over the next few months and you will see who will win the Wearable contracts. XYBR is competing head-to head against CDI on 3 contracts that will be awarded this fall and I'm betting that CDI wins them all.
My question to you is are you a paid consultant for XYBR? What solid info can you provide about any contract that XYBR has won or thinks that they will soon win?
What I think is interesting to someone who has been a XYBR shareholder since the IPO is that when I read XYBR's Annual Report, they DO NOT EVEN LIST CDI AS A COMPETITOR OF THEIRS. I don't know if this was an honest omission or an attempt to mislead shareholders.
XYBR's overhead and cost structure is also too high for the business that they are doing. They have 43 employees and consultants and the Newman brothers (CEO - Edwin and his brother - Steven, a consultant) and their cronies are getting a sweetheart deal even if XYBR goes bankrupt. They sign their crony consultants to 3 year contracts at $150K base with stock grants or options and severence clauses that require $300K pay offs. Most companies have their consultants on agreements which can be cancelled at any time without these ridiculous severence payouts. It also looks like the Newman brothers made money by funneling work to Tech Virginia which they controlled. Did you notice that Edwins wife is on the payroll and his wife's uncle got paid a $50K "advance bonus" for a sale that he hadn't made yet. The newmans will come out just fine no matter what happens, it's the shareholders who will be left holding th bag.
Did you know that XYBR was advertising in the Washington Post employment section a few weeks back for a COO and a VP of Marketing? If things are going so good, then why are they looking for top managers?
You've hit the nail on the head when you said that XYBR is getting the word out to institutional investors and potential partners. The thing missing in this statement is CUSTOMERS. I've never argued that XYBR isn't good at hyping their stock to Wall St, but if they spent time selling their product instead of their stock, they might have some customers. This Wall St lobbying is why the XYBR stock has recently moved up. The Newmans have 1.8M shares of restricted stock in escrow that they will lose if they can't meet their original financial projections (Dead on the IPO day) OR they get the stock to stay above 11 for 30 consecutive trading days. With this incentive, they will do whatever is necessary to hype the stock, but eventually earnings will have to be there or the stock will go back down to its true valuation.
I don't know what kind of business that you are in, but it is funny that you would rely on information from a Wall St investment banker over information from a direct competitor of XYBR's who one could argue is a little closer to the action in terms of XYBR's sales prospects. |
