With KLSE's stock struggling around .50, I don't think anybody cares anymore. In hindsight, the board made the correct decision in not getting involved in a gold company. Although I wish SMD would stick to Fonix and not get diverted from that endevour, I can't say at this moment it has cost me anything. SMD won't make Fonix a success, the engineers will. Bill Gates doesn't care what the business people think, he values what the technical people (Cole, Seimens, Kim, Oberteuffer, etc.) are saying.
I believe there are many valid reasons to think poorly of this stock. However, I don't believe the risk reward is on the short side. I have no doubt that Fonix could sell their patents and their development efforts to date for $50 million. This is pocket change in the world of voice recognition r&d. That only leaves about $2 per share of downside risk. I believe the upside potential is unlimited. At the moment I believe the better risk/reward ratio is on the long side.
Either way, I believe we aren't too far from knowing who is right and who is wrong.
Also, there seems to be some concern that the Business Week article didn't mention Fonix. I would like to point out that the article did quote Oberteuffer and Cole who both have staked their reputations on Fonix. Also, it seems to me that the world hasn't been introduced to Fonix yet. It stands to reason that if Fonix can gererate a several hundred million market cap without the average guy on the street even aware of its existence, what potential does the stock have if the main stream press starts writing about Fonix?
Marc |
