CYCOMM (CYII)-on aquisition trail Message Board

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

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To: Matthew Leo who wrote (1150)	3/25/1998 6:01:00 AM
From: Robert Morrison	Read Replies (3) of 1800

Matt. This stock was $10+ when quarterly turnover was $300K and there were zero backorders. Now we are at $5M per quarter and $10M in backorders and the price is $2. If we follow this linear progression all the way then when turnover is $20M per Q and backorders are $50M the price should be about 50 cents! Why would a $300K/Q company trade at one stage near $20? The answer was promotion and marketing and basically hype. I say give a stock promoter a pile of shares and let him go for it. If it costs shareholders $200k to add $millions of dollars of value to the company and boost investor confidence then it makes no economic sense to wait for earnings to drop out the bottom. If a company's share price is flat most investors would say there must be something wrong with this company because the directors don't have enough confidence in it to promote it. Sorry to sound like a worn-out record but look at Transcrypt International. Losing 39 cents a share (CYI 59 cents) and capitalised at $228M (CYI at $20M). This is after a $4M issue by Transcrypt with the promoters pocketing $2M in the issue through selling down their position...how's that for a vote of confidence. If you go and check what the analysts say about TRII they are rate the stock as "Strong Buy"!!!! Point is you don't need earnings to sell stock and so there is no reason to delay what needs to be done. Seeing that just about everything on the market has quadrupled over the last 3 years one would be a bit suspicious of those few stocks that have missed the greatest bull market in the history of mankind completely. Let's not wait until the market is on its butt to start selling Cycomm...by then there will be blue-chip bargains galore to buy which won't include Cycomm. It's all marketing. Take a Jaguar list it at $19000 and everyone says there must be something wrong with it because it is so cheap. List it at $10k less than the Rolls and you'll sell it on the spot. Rob PS Did Warren Buffet really buy some stock...if he did this guy must be planning to live to 150 at the rate we are going. I'll give the old guy credit though for understanding marketing...look at Coke...sugary water worth billions while dairy farmers (who make a healthy drink) go bankrupt.

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