Hi franco, you wrote.....
<<How could it be that you are so narrow minded and just want to see the negatives and don't even try to understand.>>
Please don't misconstrue an analysis of yesterday's announcement as a character flaw. I have been ebullient and in awe of many technology agreements from other companies over the years. This one, in light of the company management's overstatements of the past and in light of the length of time it took Salomon Bros. to close, is in my opinion somewhat of a let down.
As you mentioned, I am short the stock, not out of animosity toward you or toward the company. My position is a business transaction for me, not a statement of politics. I believe that a company with essentially $6 million in assets (as you can see the $20 million certificate of deposit is essentially fully borrowed against, so it is worthless as an asset), a $33 million negative net worth and a market cap of $350 million, is in quite a hole and is trading on the hope that the technology is in extreme demand. Given the length of time involved and the fact that Seimens has commanded the "exclusive" arrangement, then that "demand" for the technology appears, in my opinion, weak enough to be unable dig this company out of the financial hole it has dug for itself.
<<Now, since you are short and stubbornly intend to remain so, remember that your reward is maximum 6 bucks, but with every deal fonix signs, your risk rises exponentially.>>
Again, franco, I try to keep emotions out of my investment decisions as much as possible. But can you verify and substantiate your claim that this stock will not go below $6/share? As you know, I believe that it can go significantly below this number.
Yes, if FONX signs further deals, it will warrant scrutiny from me or anyone who is either short or long. This deal, however, does not prompt me to close out my position.
Good luck to you. |
