Rick,
I agree with you. Madsen has increased his personal committment to the company by a substantial amount. Mark Rafferty, CFO at FSCX, has already filed the S-4 form with the SEC to report the insider buying activity. The SEC will be able to verify this for those who want to follow-up.
GTE relationship should be watched VERY carefully. They would be able to sell a great amount of Fastcomm product around the globe. Formerly, Motorola presented their product in the GTE booth, as recently as last year, and this year GTE has chosen to replace Motorola with FSCX. This type of replacement of Motorola with Fastcomm was also done about two months back by Alcatel and Ingedigit at the largest telecommunications show in Brazil.
This gives us strong third party confirmation that Fastcomm product is the quality/value leader and that it is now in demand. So, these technically oriented product announcements that have not really meant that much to us investors, have been huge to the techno-heads in the industry. Now, an appearance in the GTE booth, rumored new relationships with other large companies, both domestic and foreign, and yes, believe me on this one, increased revenue from the Alcatel deal which IS alive and gaining momentum (Alcatel was the largest single source of revenue for Fastcomm last quarter, albeit, weak quarter that it was) should combine to give us improved Q2 results and the "breakout" Q3 that we want.
I do not expect to see another weak quarter like Q1 again. In fact, I am looking for a much improved Q2 and strong potential for Q3 to be the "breakout quarter" with record revenues/earnings that we would like to see. If anyone subscribes to William O'Neill's philosophy, then you may see the makings of the "handle and cup" pattern in the current chart. From this pattern, one could use their imagination to envision the current developing fundamentals to be a precursor to a move up the chart towards new highs above $21 into next summer.
I personally believe that the company's investment in product R&D, and the development of its sales force is paying off. The GTE relationship, which is just beginning, is proof positive of this. Madsen's 80,000 share purchase in his personal account is a further vote of confidence. This is currently an underfollowed issue, although as I write this, the stock is up 1/2 on 245,000 shares volume, which will be discovered (rediscovered) by the Street. Look for the current small-cap rally to trickle down into lesser-known micro-caps, such as FSCX. This is a good environment for stocks like FSCX to post a strong percentage gain from current levels.
Looking Very Good For All Of Us In Here, unless you are short.
Good Luck,
Michael. |
