I recently visited Fonix for the third time. For what it's worth, I offer the following opinions:
1) After a lengthy analysis of the risk vs. the reward, I am very comfortable with my current investment and am considering adding to my position at these recent price levels.
2) There are significant obstacles that need to be overcome to ensure that Fonix will be widely adopted as the technology that supercedes HMM. However, I believe Fonix's technology coupled with their previously announced partners' reputations and world-wide resources has as good a chance to be widely adopted as anything I am aware of that's currently in the public domain.
3) Given the deep pockets that are closely associated with this company, I'm not very concerned about the current balance sheet except for the dilution of stock that could result from the exercise of millions of stock options. However, this would only be a problem if the stock price were to go up.
4) I am very concerned about the span of control of the three amigos (Stu, Mu and Du). Since they have control over the company,. I have no assurances that they will care about a lowly shareholder like me. In my opinion, there have been decisions previously made that suggest they look out for themselves first, their friends second and other shareholders last, if at all. However, their reluctance to sell any shares does influence my belief that they are committed to this company for the long run.
5) I highly encourage any current or potential investors (long and short) to consider visiting Fonix and learn for themselves what Fonix's current direction is purported to be (it's still theoretical). Although I generally agree that there would be ample opportunity to jump on the bandwagon once circumstances dictate, I also believe that the stock price will remain very volatile and opportunities to purchase at these levels may not last very much longer.
I realize that these opinions are not worth much anybody out there. However, these opinions are my honest assessment of the current situation. As noted before, most of this is theoretical with some limited confirmation from a few third parties. I do believe that more tangible facts are close at hand that will dispel many of the doubts that exist.
I will respond to any questions that won't violate my non-disclosure agreement.
Marc |
