Cornerstone Imaging (CRNR) Message Board

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Technology Stocks : Cornerstone Imaging (CRNR)

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To: Richard Rutenberg who wrote (9)	8/22/1996 4:07:00 PM
From: Mad Bulgarian	of 430

How does issuing 1/2 million new shares discourage a takeover? They have about 7.4 million shares outstanding, so this brings them up to just under 8 million. At a price of $6 as of today, that gives them a market cap of just under $50 million - small potatoes. Say a takeover bid happens at $10 - that's $80 million. Still small potatoes. So what else is going on? As for CRNR, it's a steal at current levels. Everybody I know over there is loaded to the gills with their own stock. Either they are really stupid (not!) or they know their market potential. It could take a while, though. Basically, they are repackaging themselves as a software company. Their cash cow product, the ImageAccel line of monitors (Video Displays in Cornerspeak) has been the American Express Card of computer hardware - premium brand marketing more than anything else. Now, they can't keep selling monitors at double the price forever. Margins can't hold up. So they are betting on the new InputAccel software line to be their new star product. It's been slow out the gate, but momentum seems to be picking up. The market itself is growing at 20% - 30%, so there is a lot of room to maneuver. And InputAccel is just what the market ordered - an open "backbone" for plugging all kinds of document imaging vendors into large production data capture systems. There is a lot of money to be made in this market. Even with competitors such as Kofax and Datacap, there is plenty to go around for everybody. Just think - we spend $12 BILLION each year on manual key entry of business documents and forms. Look for this stock in the high teens in a year (that's a triple), when the bottom line impact of InputAccel will be very visible. Or watch one of the big scanner makers to buy them for a song.

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