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Microcap & Penny Stocks : INCE - Intercell info???

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To: L. R. Hamilton who wrote (2474)12/23/1997 11:06:00 PM
From: Bill Pearson  Read Replies (2) of 3358
 
File this in the "For what it is worth" file cabinet..... (and please no flames just because I continue to see long term hope for INCE).

The price of a share does not always accurately reflect what is happening inside a company.

Fact: I think it's pretty safe to say that year end tax selling is killing INCE's "market price and market cap".....but does the resulting share price, and the fear it puts in the hearts of shareholders have anything to do with whether Gil can reach his target of $25 million in revenues by the end of fiscal 1998?

Assuming the money has already been raised to fund Gil's growth, then isn't it more likely than not that if INCE more than doubles last year's (fiscal 1997) revenues & profits that the share price will eventually increase to reflect a more appropriate value?

If you look beyond the surface (i.e. share price)...you may discover that INCE's share price is 1) in line with current revenues and current shareholder sentiment, but 2) out of synch with anticipated revenues.

At this moment...the "year end tax selling" we're seeing indicates very clearly that there are more people thinking INCE won't achieve their 1998 goals than think they will. Frankly, the company has to take full blame for the current market sentiment. But, current market sentiment aside....shareholder mood more than likely can't/won't effect Sigma 7's ability to achieve their 1998 goals..... And if they do.....no valuation model out there indicates $0.12/sh is a fair market value for a company that (in the end) grows their revenues and profits 50%+ year over year.

With that said....it's sad to see what is happening happen... I won't be adding to my position regardless of how optimistic I am that Gil can achieve his goals....for no matter how undervalued a stock may be (my personal call, looking 12 months forward)....there is a point where it makes no sense to have one stock overly dominate ones portfolio.....and INCE is by far the dominant stock in my portfolio.

I'm on vacation until after the holidays....so we'll check back in after the New Year begins. PS: I'll be with Gil on Monday 1/5 in the afternoon...as I continue to track INCE's longterm earnings potential. I will be joined by at least one other shareholder who has nearly 9x's as many dollars invested in INCE as I do. The game is not over yet guys.....but you certainly can say uncle anytime you feel like it....and today it looks like many investors did just that.

Best Regards....and enjoy your Holidays.

Bill
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