XYBR - Xybernaut Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : XYBR - Xybernaut

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: fc_analyst	4/23/2005 12:46:51 AM
	Read Replies (2) of 6847

This 1997 post says it all about XYBR 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. Message 1971047 FCa

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next