CYCOMM (CYII)-on aquisition trail Message Board

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Microcap & Penny Stocks : CYCOMM (CYII)-on aquisition trail

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To: TKB who wrote (1140)	3/23/1998 12:46:00 AM
From: Robert Morrison	Read Replies (1) of 1800

$20 not unrealistic if you check out Transcrypt International (TRII:NASDAQ) which trades in this range in a similar market but a lesser product range. Big difference is that CYI is not getting promoted enough to lift volumes and the share price is too low to attract institutional investors so here we are stuck in a ridiculous $2 to $2.50 trading range until something significant happens. If Cycomm doesn't start cranking up the promo machine soon we could find the first profit announcement a non-event. The reason I say this is that on FUNDAMENTALS WITH PRESENT REVENUES AND TRENDS WE SHOULD BE TRADING WELL ABOVE $5 ALREADY. Instead we have a up and coming company ready to grab the major share of a huge market trading at 1 times revenues...it should be at least 4 times. Insofar as 4Q earnings, the gross profit percentage was below expectations...this must be an indication of idle capacity if the company is absorbing all fixed manufacturing costs into its Cost of Goods Sold. Being in Florida and Quebec probably adds to this problem. Also a bit surprising we haven't been able to get even one analyst to cover this stock over the last 2 years to give it some sort of presence. Without coverage and without a beat-up to keep the volume / momentum up we probably are looking a going to or slightly below $2 again so when we get a lift it'll struggle to get to $2.50 not $8. Most investors will be looking at Cycomm's chart and prognosis now and will be saying "2Q?/3Q? profits....okay we'll see you later this year". They're not getting messages of "buy now or you'll miss the train" so they are quite content to go and make money somewhere else and come back later in 6 months to buy in at $2.50. Don't get me wrong, the company's in better shape than ever and the future has never been brighter and with time rewards will come but if you can't get decent volumes at $2.25 then what price does it have to be? The price doesn't determine volume, volume determines price and to get volume you need to sell the dream. Rob

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