Wayne from Kingston: are still out there? What are your thoughts?
Mr. Ed and All: Me and Dr. Phil just got off the phone. Lets look at some qualitative information to deduce the direction we're headed:
1) 50 mil shares outstanding, though not prefereable, is a negligable issue. Many companies that offered shares too early in a product life cycle have consolidated and thrived in a growing market.
2) it is a stated objective for Xinex to list on the Nasdaq, although subject to shorting and some would say manipulation, this exposes Xinex to the American investing public which is a huge opportunity for growth. Given there is a product ready to go in a huge growing market Helix will not let this opportunity go by. They know how to hype a stock once listed. Sooooo, the consolidation is required to meet criteria for listing on the Nasdaq. No big deal. Again, its been done many, many time,
3) this market is poised to explode. there has been so much change in technology from microprocessers to a solid broadband infrastructure in North America that the next round of PBX upgrades/replacement from companies will not be the expensive, closed-architecture, maintenence heavy, costly, inflexible - you can think of more - PBX but instead a server-centric solution. Same with the next generation of routers!
4) Helix would not have put $2 mil in a couple months ago without recognizing that there was a strong probability to require more cash for operations in early 1998. This implies that Helix is in for the short to medium term (6 mths - 2 yrs)
Helix is far too good to have not seriously recognized the need for more cash in early 1998.
5) Helix are tied into Silicon Valley big time. In any industry North America is a small place. Between Roy Leahy as former President of a division of NORTEL - not a GM - and Helix these guys are fully tapped into people who will support Xinex in one form or another.
6) Another company - I think it was RealNetworks in the US - announced a product with 3Com that was a video LAN server. This caused great excitement HOWEVER these guys couldn't commit any bloody specs for performance, scaleability, no. users supported per processer, etc. Xinex however has complete specs with Betas behind them.
7) There are almost 40 distributers setup.
8) A strategic partner a.k.a. an industry player has been lloked for from months. Further, I have confirmation from different sources that corroborate a couple BIG TIME network companies tried to buy Xinex about 10 months ago. The BOard were adamament that they have way too much potential to cash in huge now. Clearly Helix sees this as well
Anyhow, some food for thought. On the downside we could die on the vine today.
Comments?
Best Regards,
Mark |
